CONTRACT TO CHARTER A PUBLIC SCHOOL ACADEMY
AND RELATED DOCUMENTS

ISSUED BY

THE GRAND VALLEY STATE UNIVERSITY BOARD OF TRUSTEES
(AUTHORIZING BODY)

ISSUED TO

HANLEY INTERNATIONAL ACADEMY
(A PUBLIC SCHOOL ACADEMY)

CONFIRMING THE STATUS OF
HANLEY INTERNATIONAL ACADEMY
AS A
PUBLIC SCHOOL ACADEMY

DATED:
JULY 1, 2012

 

GENERAL INDEX

Contract Schedules

Schedule 1:            University Board Resolutions
                              Authorization Resolution, dated May 1, 2012

Schedule 2:            Articles of Incorporation

Schedule 3:            Bylaws

Schedule 4:            Fiscal Agent Agreement

Schedule 5:            Master Calendar of Reporting Requirements (MCRR)

Schedule 6:            Information To Be Provided By Academy and Educational Management Company

Schedule 7:            Academy Specific Information & Educational Program

                             Schedule 7-1: Educational Goals and Programs

                             Schedule 7-2: Curriculum

                             Schedule 7-3: Staff Responsibilities

                             Schedule 7-4: Methods of Accountability and Pupil Assessment

                             Schedule 7-5: Academy's Admission Policies and Criteria

                             Schedule 7-6: School Calendar and School Day Schedule

                             Schedule 7-7: Age/Grade Rang of Pupils Enrolled

                             Schedule 7-8: Address and Description of Proposed Physical Plant;
                                                   Lease or Deed for Proposed Site; and Occupancy Certificate

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

Section

Section 1.1        Certain Definitions.......................................................................................................................1
Section 1.2        Schedules...................................................................................................................................3
Section 1.3        Statutory Definitions....................................................................................................................3
Section 1.4        Application.................................................................................................................................3
Section 1.5        Conflicting Contract Provisions...................................................................................................3

ARTICLE II

ROLE OF GRAND VALLEY STATE UNIVERSITY
BOARD OF TRUSTEES AS AUTHORIZING BODY

Section 2.1        University Board Resolutions......................................................................................................4
Section 2.2        Method for Monitoring Academy's Compliance With Applicable Law
                         and Performance of it's Targeted Education Outcomes................................................................4
Section 2.3        University Board Administrative Fee...........................................................................................5
Section 2.4        University Board as Fiscal Agent for the Academy......................................................................5
Section 2.5        Authorization of Employment......................................................................................................5
Section 2.6        Financial Obligations of the Academy Are Separate
                         From the State of Michigan, University Board and the University.................................................6
Section 2.7        Academy Has No Power To Obligate or Bind State of
                         Michigan, University Board or the University...............................................................................6
Section 2.8        Authorizing Body Contract Authorization Process.......................................................................6

ARTICLE III

REQUIREMENT THAT ACADEMY ACT SOLELY AS GOVERNMENTAL
AGENCY OR ENTITY AND POLITICAL SUBDIVISION

Section 3.1        Governmental Agency or Entity and Political Subdivision............................................................7
Section 3.2        Other Permitted Activities..........................................................................................................7

ARTICLE IV

PURPOSE

Section 4.1        Academy's Purpose..................................................................................................................7

ARTICLE V

CORPORATE STRUCTURE OF THE ACADEMY

Section 5.1        Articles of Incorporation............................................................................................................7
Section 5.2        Bylaws......................................................................................................................................7

ARTICLE VI

OPERATING REQUIREMENTS

Section 6.1        Governance Structure................................................................................................................8
Section 6.2        Contributions and Fund Raising..................................................................................................8
Section 6.3        Educational Goals and Programs................................................................................................8
Section 6.4        Curriculum.................................................................................................................................8
Section 6.5        Methods of Accountability.........................................................................................................8
Section 6.6        Staff Responsibilities..................................................................................................................9
Section 6.7        Admission Policy.......................................................................................................................9
Section 6.8        School Calendar/School Day Schedule......................................................................................9
Section 6.9        Age/Grade Range of Pupils Enrolled..........................................................................................9
Section 6.10      Annual Financial Audit...............................................................................................................9
Section 6.11      Address and Description of Proposed Site(s); Process for Expanding
                         Academy's Site Operations........................................................................................................9
Section 6.12      Accounting Standards...............................................................................................................10
Section 6.13      Placement of University Student Interns.....................................................................................10
Section 6.14      Disqualified Organizational or Contractual Affiliations.................................................................10
Section 6.15      Matriculation Agreements..........................................................................................................11
Section 6.16      Posting of Adequate Yearly Progress (AYP) and Accreditation Status........................................11

ARTICLE VII

TUITION PROHIBITED

Section 7.1        Tuition Prohibited: Fees and Expenses........................................................................................11

ARTICLE VIII

COMPLIANCE WITH PART 6A OF CODE AND OTHER LAWS

Section 8.1        Compliance with Part 6a of Code...............................................................................................11
Section 8.2        Compliance with State School Aid Act........................................................................................11
Section 8.3        Open Meetings Act.....................................................................................................................11
Section 8.4        Freedom of Information Act........................................................................................................11
Section 8.5        Public Employees Relations Act...................................................................................................12
Section 8.6        Prevailing Wage on State Contracts.............................................................................................12
Section 8.7        Uniform Budgeting and Accounting Act........................................................................................12
Section 8.8        Revised Municipal Finance Act of 2001........................................................................................12
Section 8.9        Non-discrimination.......................................................................................................................12
Section 8.10      Other State Laws.........................................................................................................................12
Section 8.11      Federal Laws...............................................................................................................................12

ARTICLE IX

AMENDMENT

Section 9.1        Process for Amending the Contract...............................................................................................12
Section 9.2        Process for Amending Academy Articles of Incorporation..............................................................13
Section 9.3        Process for Amending Academy Bylaws........................................................................................13
Section 9.4        Change in Existing Law..................................................................................................................13

ARTICLE X

TERMINATION, SUSPENSION AND REVOCATION

Section 10.1      Grounds and Procedures for Academy Termination of Contract......................................................13
Section 10.2      Termination by University Board.....................................................................................................14
Section 10.3      Contract Suspension.......................................................................................................................15
Section 10.4      Statutory Grounds for Revocation...................................................................................................15
Section 10.5      Other Grounds for University Board Revocation..............................................................................16
Section 10.6      University Board Procedures for Revoking Contract........................................................................17
Section 10.7      Automatic Revocation by State of Michigan.....................................................................................19
Section 10.8      Material Breach of Contract............................................................................................................20
Section 10.9      Appointment of Conservator/Trustee...............................................................................................20

ARTICLE XI

PROVISIONS RELATING TO PUBLIC SCHOOL ACADEMIES

Section 11.1      Grand Valley State University Faculty Employment in the Academy..................................................21
Section 11.2      The Academy Faculty Appointment to Grand Valley State University Faculty....................................21
Section 11.3      Student Conduct and Discipline........................................................................................................21
Section 11.4      Insurance.........................................................................................................................................21
Section 11.5      Transportation..................................................................................................................................22
Section 11.6      Extracurricular Activities and Interscholastic Sports...........................................................................22
Section 11.7      Legal Liabilities and Covenants Not to Sue.......................................................................................22
Section 11.8      Lease or Deed for Proposed Single Site(s).......................................................................................23
Section 11.9      Occupancy and Safety Certificates...................................................................................................23
Section 11.10    Deposit of Public Funds by the Academy..........................................................................................23
Section 11.11    Educational Serve Provider Agreements...........................................................................................23
Section 11.12    Required Provisions for Educational Service Provider Agreements....................................................23
Section 11.13    Incompatible Public Offices and Conflicts of Interest Statutes............................................................24
Section 11.14    Certain Familial Relationships Prohibited...........................................................................................25
Section 11.15    Dual Employment Positions Prohibited..............................................................................................25
Section 11.16    Oath of Public Office.......................................................................................................................25
Section 11.17    Information Available to the Public and University.............................................................................25
Section 11.18    Authorizing Body Invitation to Apply to Convert Academy to School of Excellence...........................25

ARTICLE XIII

GENERAL TERMS

Section 12.1      Notices............................................................................................................................................26
Section 12.2      Severability......................................................................................................................................26
Section 12.3      Successors and Assigns....................................................................................................................26
Section 12.4      Entire Contract.................................................................................................................................26
Section 12.5      Assignment.......................................................................................................................................26
Section 12.6      Non-Waiver.....................................................................................................................................27
Section 12.7      Indemnification.................................................................................................................................27
Section 12.8      Construction.....................................................................................................................................27
Section 12.9      Force Majeure.................................................................................................................................27
Section 12.10    No Third Party Rights.......................................................................................................................27
Section 12.11    Non-agency.....................................................................................................................................27
Section 12.13    Governing Law.................................................................................................................................28
Section 12.14    Term of Contract..............................................................................................................................28
Section 12.15    Survival of Provisions........................................................................................................................29
Section 12.16    Termination of Responsibilities...........................................................................................................29
Section 12.17    Disposition of Academy Assets Upon Termination or Revocation of Contract.....................................29

Contract to Charter a Public School Academy

Pursuant to Part 6a of the Revised School Code ("Code"), being Sections 380.501 to 380.507 of the Michigan Compiled Laws, the Grand Valley State University Board of Trustees ("University Board") issues a contract to Hanley International Academy (the "Academy"), to be effective July 1, 2012, confirming the Academy's status as a public school academy in this State. The Parties agree that the issuance of this Contract is subject to the following Terms and Conditions:

ARTICLE I

DEFINITIONS

Section 1.1        Certain Definitions. For purposes of this Contract, and in addition to the terms defined throughout this Contract, each of the following words or expressions, whenever capitalized, shall have the meaning set forth in this section:

                a) Academy means the Michigan non-profit corporation authorized by this Contract.

                b) Academy Board means the Board of Directors of the Academy authorized by this Contract. Academy Board member or
                    Academy Director means an individual who is a member of the Academy Board, whether in the past, present or future.

                c) Applicable Law means all state and federal law applicable to public school academies

                d) Applicant means the person or entity that submitted the public school academy application to the University for the
                    establishment of the Academy.

                e) Application means the public school academy application and supporting documentation submitted to the University
                    for the establishment of the Academy.

                f) Authorization Resolution means the resolution adopted by the Grand Valley State University Board of Trustees approving
                   the issuance of a Contract.

                g) Charter School means public school academy.

                h) Code means the Revised School Code. Act No. 451 of the Public Acts of 1976, as amended, being Sections 380.1 to 380.1852
                    of the Michigan Compiled Laws.

                i) Contract means, in addition to the definitions set forth in the Code, the Terms and Conditions and the Schedules.

                j) Educational Service Provider or "ESP" means an educational management organization as defined under section 503c of the
                   Code, MCL 380.503c, that has entered into a contract or agreement with the Academy Board for operation or management of the
                   Academy, which contract has been submitted to the University Charter Schools Office Director for review as provided in
                   Section 11.11 and has not been disapproved by the University Charter Schools Office Director, and is consistent with the Charter
                   Schools Office Educational Service Provider Policies, as they may be amended from time to time, and Applicable Law.

                k) Fund Balance Deficit means the Academy has more liabilities than assets at the end of any given school fiscal year, and includes
                   any fiscal year where the Academy would have had a budget deficit but for a financial borrowing from, or monetary contribution
                   by an Educational Service Provider or other person or entity to the Academy. if the Academy receives a gift or grant of money or
                   financial support from an Educational Service Provider or other person or entity that does not require repayment by the Academy
                   and is not conditioned upon the actions or inactions of the Academy Board, then such gift or grant shall not constitute a financial
                   borrowing or contribution for purposes of determining a Fund Balance Deficit.

                l) Management Agreement or ESP Agreements means an agreement as defined under section 503c of the Code,
                   MCL 380.503c that has been entered into between an ESP and the Academy Board for operation and/or management of the
                   Academy, which has been submitted to the University Charter Schools Office Director for review as provided in Section 11.11
                   and has not been disapproved by the University Charter Schools Office Director, and is consistent with the CSO
                   Educational Service Provider Policies as they  may be amended from time to time, and Applicable Law.

                m) Master Calendar of Reporting Requirements (MCRR) means the compliance certification duties required of the Academy
                     by the University Board. The University Charter School Office may amend the MCRR each fiscal year or at other times as
                     deemed appropriate by the University President. These changes shall be automatically incorporated into the Contract and shall
                     be exempt from the Contract amendment procedures under Article IX of these Terms and Conditions.

                n) Method of Selection Resolution means the resolution adopted by the University Board providing for the method of selection
                    length of term, number of members, qualification of Board Academy members and other pertinent provisions relating to the
                    Academy Board.

                o) Resolution means any resolution adopted by the Grand Valley State University Board of Trustees.

                p) Schedules means the schedules incorporated into a part of the Terms and Conditions.

                q) Terms and Conditions means this document entitled Terms and Conditions of Contract issued by the Grand Valley State
                    University Board of Trustees.

                r) University means Grand Valley State University established pursuant to Article VIII, Sections 4 and 6 of the 1963 Michigan
                    Constitution and MCL 390.841 et seq.

                s) University Board means the Grand Valley State University Board of Trustees.

                t) University Charter Schools Hearing Panel or Hearing Panel means such person(s) as designated by the University President.

                u) University Charter Schools Office or CSO means the office the University Board, by issuance of this Contract, hereby
                    designates as the point of contact for public school academy applicants and public school academies authorized by the University
                    Board. The University Charter School Office is also responsible for managing, implementing, and overseeing the University
                    Board's responsibilities with respect to the Contract.

                v) University Charter Schools Office Director or CSO Director means the person designated by the University President to
                    administer the operations of the University Charter School Office.

                w) University President means the President of Grand Valley Sate University or his or her designee.

Section 1.2        Schedules. All Schedules to this Contract are part of this Contract.

Section 1.3        Statutory Definitions. Statutory terms defined in the Code shall have the same meaning in this Contract.

Section 1.4        Application. The Application submitted to the University Board for the establishment of the Academy is incorporated into,
                         and made part of, this Contract. In the event that there is an inconsistency or dispute between materials in the Application
                         and the Contract, the language or provisions in the Contract shall control.

Section 1.5        Conflicting Contract Provisions. In the event that there is a conflict between the language contained in the provisions of this
                         Contract, the Contract shall be interpreted as follows: (i) the Method of Selection Resolution shall control over any other
                         conflicting language in the Contract; (ii) the Authorizing Resolution shall control over any other conflicting language in the
                         Contract with the exception of language in the Method of Selection Resolution; (iii) the Terms and Conditions shall control over
                         any other conflicting language in the Contract with the exception of language in the Method of Selection Resolution and the
                         Authorizing Resolution; and (iv) the Articles of Incorporation shall control over any other conflicting language in the Contract
                         with the exception of language in the Method of Selection Resolution, Authorizing Resolution and these Terms and Conditions.

ARTICLE II

ROLE OF GRAND VALLEY STATE UNIVERSITY
BOARD OF TRUSTEES AS AUTHORIZING BODY

Section 2.1        University Board Resolutions. For purposes of this Contract, the University Board has adopted the following resolutions:

                (a) Method of Selection Resolution. The University Board has adopted the Method of Selection Resolution, which is incorporated
                     into this Contract as part of Schedule 1. At anytime and at its sole discretion, the University Board may amend the Method of
                     Selection Resolution. Upon University Board approval, changes to the Method of Selection Resolution shall automatically be
                     incorporated into this Contract and shall be exempt from the amendment procedures under Article IX of the
                     Terms and Conditions.

                (b) Authorizing Resolutions. The University Board has adopted the Authorizing Resolution, which is incorporated into this Contract
                      as part of Schedule 1.

Section 2.2        Method for Monitoring Academy's Compliance with Applicable Law and Performance of its Targeted Educational Outcomes.
                         The University Board has the responsibility to oversee the Academy's compliance with the Contract and all Applicable Law.
                         The Academy shall perform the compliance certification duties required by the University Board as outlined in the Contract
                         incorporated into this Contract as Schedule 5. Additionally, the Academy shall be responsible for the following:

                a) In the event that the University President determines that the Academy's educational outcomes should be reviewed to help
                    determine if the Academy is meeting the educational goals set forth in the Schedules, the University President, at his or her
                    discretion, may require an objective evaluation of student performances by an educational consultant acceptable to both the
                    Academy and the University President may require an evaluation of student performance to be selected by and at the expense of
                    the University. The Academy shall cooperate with the evaluation, including any student testing required.

                b) Within ten (10) days of receipt, the Academy shall notify the University Charter Schools Office of correspondence received from
                    the Department of Education or State Board of Education that requires a written or formal response.

                c) Within ten (10) days of receipt, the Academy shall report to the University Charter Schools Office and the University Counsel
                    Office any litigation or formal proceedings alleging violation of Applicable Law or contractual agreement against the Academy, its
                    officers, employees, agents and/or contractors.

                d) The Academy shall permit review of the Academy's records and inspection of its premises at any time by representatives of the
                    University. Normally, such inspections shall occur during the Academy's hours of operation and after advance notice to the
                    Academy.

                e) The Academy shall provide the Charter Schools office with copies of reports and assessments concerning the educational
                    outcomes achieved by pupils attending the Academy and shall provide necessary approvals for the Charter School Office to
                    access electronic information received or stored by the State of Michigan including, but not limited to, the Department of
                    Education or other agency authorized by the State to collect school data.

                f) The Academy shall submit audited financial statements, including auditor's management letters and any exceptions noted by the
                    auditors, to the University Charter Schools Office. The financial statements and auditor's management letters shall be submitted
                    to the University Charter Schools Office within ninety (90) days after the end of the Academy's fiscal year.

                g) The Academy shall provide the University Charter Schools Office with a copy of the proposed annual budget for the upcoming
                    fiscal year of the Academy no later than July 1st. The Academy Board is responsible for establishing, approving and amending
                    the annual budget in accordance with the Uniform Budgeting and Accounting Act, MCL 141.421 et seq., and for providing all
                    amendments and revisions to the University Charter Schools Office following Academy Board approval.

                h) The Academy shall provide to the University Charter Schools Office minutes of all Academy Board meetings no later than
                    fourteen (14) days after such meeting.

Section 2.3    University Board Administrative Fee. During the term of this Contract, the Academy shall pay the University Board an
                     administrative fee of 3% of the state school aid payments received by the Academy. For purposes of this Contract state school
                     aid payments received by the Academy in July and August in any given year shall be deemed to have been received by the
                     Academy during the Contract term. This fee shall be retained by the University Board from each state school aid payment
                     received by the University Board for forwarding to the Academy. This fee shall compensate the University Board for issuing the
                     Contract and overseeing the Academy's compliance with the Contract and all Applicable Law.

Section 2.4    University Board as Fiscal Agent for the Academy. The University Board is the fiscal agent for the Academy. The University
                     Board is the fiscal agent for the Academy. The University Board shall, within three (3) business days, forward to the Academy
                     all state school aid funds or other public or private funds received by the University Board for the benefit of the Academy. The
                     University Board shall retain any amount owed to the University Board by the Academy pursuant to this Contract. For purposes
                     of this section, the responsibilities of the University Board, the State of Michigan, and the Academy are set forth in the Fiscal
                     Agent Agreement incorporated herein as Schedule 4.

Section 2.5    Authorization of Employment. The Academy may employ or contract with personnel. If the Academy contracts for personnel
                     with an Educational Service Provider, the Academy shall submit a draft of the proposed agreement to the University Charter
                     Schools Office for review. The University Charter Schools Office may disapprove the proposed agreement if it contains
                     provisions in violation of this Contract or Applicable Law. No ESP agreement shall be effective unless and until the agreement
                     complies with Section 11.12 of these Terms and Conditions. With respect to Academy employees, the Academy shall have the
                     power and responsibility to (i) select and engage employees; (ii) pay their wages; (iii) dismiss employees; and (iv) control the
                     employees' conduct, including the method by which the employee carries out his or her work. An employee hired by the
                     Academy shall be an employee of the Academy for all purposes and not an employee of the University for any purpose. The
                     Academy Board shall prohibit any individual from being employed by the Academy, an ESP, or an employee leasing company
                     involved in the operation of the Academy, in more than one (1) full-time position and simultaneously being compensated at a
                     full-time rate for each of these positions. The Academy shall be responsible for carrying worker's compensation insurance and
                     unemployment insurance for its employees.

Section 2.6    Financial Obligations of the Academy are Separate from the State of Michigan, University Board and the University.
                     Any contract, mortgage, loan or other instrument of indebtedness entered into by the Academy and a third party shall not in any
                     way constitute an obligation, either general, special, or moral, of the State of Michigan, the University Board, or the University.
                     Neither the full faith and credit nor the taxing power of the State of Michigan or any agency of the State, nor the full faith and
                     credit of the University Board or the University shall ever be assigned or pledged for the payment of any Academy contract,
                     agreement, note, mortgage, loan or other instrument of indebtedness.

Section 2.7    Academy Has No Power to Obligate or Bind State of Michigan. University Board or the University. The Academy has no
                     authority whatsoever to enter into any contract or other agreement that would financially obligate the State of Michigan.
                     University Board or the University, nor does the Academy have any authority whatsoever to make any representations to
                     lenders or third parties, that the State of Michigan, University Board or the University in any way guarantee, are financially
                     obligated, or are in any way responsible for any contract, agreement, note, mortgage, loan or other instrument of indebtedness
                     entered into by the Academy.

Section 2.8    Authorizing Body Contract Authorization Process. Pursuant to the Code, the University Board is not required to issue a contract
                     to the Academy. This Contract is for a fixed term and will terminate at that end of the Contract term set forth in Section 12.14
                     without any further action of either the Academy or the University Board. Prior to the end of the Contract term, the University
                     Board shall provide a description of the process and standards by which the Academy may be considered for the issuance of a
                     new contract. The timeline for consideration of whether to issue a new contract to the Academy shall be solely determined by
                     the University Board. The standard for issuance of a new contract shall include increases in academic achievement for all groups
                     of pupils as measured by assessments and other objective criteria established by the University Board as the most important
                     factor of whether is issue or not issue a new contract. The University Board, at its sole discretion, may change its process and
                     standards for issuance of a contract at anytime, and any such changes shall take effect automatically without the need for any
                     amendment to this Contract. Consistent with the Code, the University Board may elect, at its sole discretion , not to consider
                     the issuance of a contract, consider reauthorization of the Academy and elect not to issue a contract, or consider reauthorization
                     of the Academy and issue a contract for a fixed term.

ARTICLE III

REQUIREMENT THAT ACADEMY ACT SOLELY AS GOVERNMENTAL AGENCY
OR ENTITY AND POLITICAL SUBDIVISION

Section 3.1    Governmental Agency or Entity and Political Subdivision. The Academy shall act exclusively as a governmental agency or
                     entity and political subdivision.

Section 3.2    Other Permitted Activities. Nothing in this Contract shall prohibit the Academy from engaging in other lawful activities that are
                     not in derogation of the Academy's status as a public school or that would not jeopardize the eligibility of the Academy for state
                     school aid funds. Subject to Section 2.5 and Section 6.15 of the Terms and Conditions, the Academy may enter into
                     agreements with other public schools, public school academies, governmental units, businesses, community and nonprofit
                     organizations where such agreements contribute to the effectiveness of the Academy or advance education in this state.

ARTICLE IV

PURPOSE

Section 4.1    Academy's Purpose. The Academy Board shall identify the purpose or mission of the Academy. Any subsequent changes to
                     the Academy's purpose or mission shall be carried out by amendment in accordance with Article IX of these Terms and
                     Conditions. The Academy's stated purpose or mission shall be set forth in the Schedules.

ARTICLE V

CORPORATE STRUCTURE OF THE ACADEMY

Section 5.1    Articles of Incorporation. Unless amended pursuant to Section 9.2 of Article IX herein, the Articles of Incorporation of the
                     Academy, as set forth in Schedule 2, shall be the Articles of Incorporation of the Academy. The Academy Board represents to
                     the University Board that Schedule 2 includes all amendments to the Academy's Articles of Incorporation as of the date
                     set for above.

Section 5.2    Bylaws. Unless amended pursuant to Section 9.3 of Article IX herein, the Bylaws of the Academy, as set forth in Schedule 3,
                     shall be the Bylaws of the Academy. The Academy Board represents to the University Board that Schedule 3 includes all
                     amendments to the Academy's Bylaws as of the date set forth above. 

ARTICLE VI

OPERATING REQUIREMENTS

Section 6.1    Governance Structure. The Academy shall be organized and administered under the direction of the Academy Board and
                     pursuant to the governance structure as set forth in its Bylaws. The Academy's Board of Directors shall meet at least six time per
                     fiscal year, unless another schedule is mutually agreed upon by the University President and the Academy.

Section 6.2    Contributions and Fund Raising. The Academy may solicit and receive contributions and donations as permitted by law.
                     No solicitation shall indicate that a contribution to the Academy is for the benefit of the University. The University shall not be
                     required to receive any contributions or donations for the benefit of the Academy. If the University receives contributions or
                     donations for the benefit of the Academy, it shall forward such funds to the Academy within three (3) business days of receipt.

Section 6.3    Educational Goals and Programs. The Academy shall pursue the educational goals and programs identified and contained in the
                     Schedules, The educational goals shall include demonstrated improved pupil academic achievement for all groups of pupils.
                     Such goals and programs may be amended pursuant to Section 9.1 of Article IX of the Terms and Conditions. Upon request,
                     the Academy shall provide the University Charter Schools Office with a written report, along with supporting data, assessing the
                     Academy's progress toward achieving its goal(s).

Section 6.4    Curriculum. The Academy shall have flexibility in developing, realigning, and implementing the curriculum identified in the
                     Schedules. Any changes to the curricula shall be administered pursuant to Section 9.1 of Article IX of the Terms and
                     Conditions, and such proposed, curricula shall be designed to achieve the Academy's overall educational goals and State's
                     educational assessment objectives.

Section 6.5    Methods of Accountability. In addition to those set forth in this Section 6.5, the Academy shall evaluate its pupils' work based on
                     the assessment strategies identified in the Schedules. To the extent applicable, the pupil performance of the Academy shall be
                     assessed using at least the Michigan Education Assessment Program (MEAP) test or the Michigan Merit Examination (MME)
                     designed under the Code. The Academy shall provide the University Charter Schools Office with copies of reports,
                     assessments and test concerning the following:

                (a) educational outcomes achieved by pupils attending the Academy and other reports reasonably requested by the University
                     Charter School Office;

                (b) an assessment of the Academy's student performance at the end of each academic school year or at such times as the
                     University Board may reasonable request;

                (c) an annual education report in accordance with the Code;

                (d) an annually administered nationally recognized norn-referenced achievement test for the Academy's grade configuration or a
                     programs of testing approved by the University Charter Schools Office Director; and

                (e) all tests required under Applicable Law.

                The University Board may use such reports, assessments and test results in making its decision to suspend, terminate, or not issue
                a new contract at the end of the Contract, or revoke the Contract.

Section 6.6    Staff Responsibilities. Subject to Section 2.5 Article II of the Terms and Conditions, the University Board authorizes the Academy
                     to employ or contract with an Educational Service Provider. A copy of the ESP agreement shall be included in the Schedules.

Section 6.7    Admission Policy. The Academy shall comply with all application, enrollment and admissions policies and criteria required by
                     Applicable Law. A copy of the Academy's admission policies and criteria are set forth in the Schedules. With respect to the
                     Academy's pupil admissions process, the Academy shall provide any documentation or information requested by the
                     University Charter Schools Office that demonstrates the following:

                (a) the Academy has made a reasonable effort to advertise its enrollment efforts to all puplis; and

                (b) the Academy's open enrollment period was for a duration of at least 2 weeks and permitted the enrollment of pupils by parents
                     by parents at times in the evening and on weekends.

Section 6.8    School Calendar/School Day Schedule. The Academy shall comply with all minimum standards governing the length of the
                     school term, minimum number of days and hours of instruction required by Applicable Law. The Academy agrees to make
                     available to the CSO Office a copy of the School Calendar/School Day Schedule for each academic school year no later than
                     July 1st. A copy of the School Calendar/School Day Schedule shall be automatically incorporated into the Schedules, without
                     the need for an amendment under Article IX of the Terms and Conditions.

Section 6.9    Age/Grade Range of Pupils Enrolled. The Academy is authorized to operate Kindergarten through Eighth grade(s). The
                     Academy may add additional grades and vocational programs in the future, pursuant to Section 9.1 of Article IX of the
                     Terms and Conditions.

Section 6.10  Annual Financial Audit. The Academy shall conduct an annual financial audit prepared and reviewed by an independent certified
                     public accountant in accordance with generally accepted governmental auditing principles. The Academy shall submit the annual
                     financial statement audit and auditor's management letter to the Charter Schools Office in accordance with the MCRR. The
                     Academy Board shall provide to the Charter Schools Office a copy of any responses to the auditor's management letter in
                     accordance with the MCRR.

Section 6.11  Address and Description of Proposed Site(s); Process for Expanding Academy's Site Operations. The proposed address and
                     physical plant description of the Academy's proposed site or sites is set forth in Schedule 7-8. Following Academy Board and
                     shall be incorporated into this Contract by amendment. With the approval of the University Board, the Academy Board may
                     operate the same configuration of age or grade levels at more than one (1) site if each configuration of age or grade levels and
                     at more than one (1) site if each configuration of age or grade levels and each site identified in the Schedule 7-8 are under the
                     direction and control of the Academy Board.

                The University Board's process for evaluating and approving the same configuration of age or grade levels at more than one (1)
                site is as follows:

                By formal resolution, the Academy Board may request the authority to operate the same configuration of age or grade levels at more
                than one site. The Academy Board shall submit to the University Charter Schools Office an application for site expansion, in a form
                or manner determined by the University Charter Schools Office. The application for site expansion shall include all information
                requested by the University Charter Schools Office, including detailed information about the site, revised budge, renovation and site
                improvement costs, the Academy's proposed operations at the site, and the information provided in Contract Schedules 7-8. Upon
                receipt of a complete application for site expansion, the University Charter Schools Office shall review the application for site
                expansion and make a recommendation to the University Board on whether the Academy's request for site expansion should be
                approved. A positive recommendation by the University Charter Schools Office of the application for site expansion shall include a
                determination by the Charter Schools Office that the Academy is operating in compliance with the Contract and is making
                measureable progress toward meeting the Academy's educational goals. The University Board may consider the Academy Board's
                site expansion request following submission by the University Charter Schools Office of a positive recommendation.

                If the University Board approves the Academy Board's site expansion request, the Contract shall be amended in accordance with
                Article IX of these Terms and Conditions. The University Board reserves the right to modify, reject, or approve any applications
                for site expansion in its sole and absolute discretion.

Section 6.12  Accounting Standards. The Academy shall at all times comply with generally accepted public sector accounting principles, and
                     accounting system requirements that comply with Applicable Law.

Section 6.13  Placement of University Student Interns. The Academy may be a placement site for University students who are in education or
                     other pre-professionals in training to serve in public schools. Such placement shall be without charge to the University and
                     subject to other terms and conditions as the Academy and the University agree.

Section 6.14  Disqualified Organizational or Contractual Affiliations. The Academy shall comply with all state and federal law applicable to
                     public schools concerning church-state issues. To the extent disqualified under the state or federal constitutions, the Academy
                     shall not be organized by a church or other religious organization and shall not have any organizational or contractual affiliation with
                     or constitute a church or other religious organization. Nothing in this Section shall be deemed to diminish or enlarge the civil and
                     political rights, privileges and capacities of any person on account of his or her religious belief.

Section 6.15  Matriculation Agreements. Before the Academy Board approves a matriculation agreement with another public school, the
                     Academy shall provide a draft copy of the agreement to the University Charter School Office for review. Any matriculation
                     agreement entered into by the Academy shall be added to the Schedules through a contract amendment approved in accordance
                     with the Contract. Until the matriculation agreement is incorporated into the Contract, the Academy is prohibited from granting
                     an enrollment priority to any student pursuant to that matriculation agreement.

Section 6.16  Posting of Adequate Yearly Progress (AYP) and Accreditation Status. The Academy shall post notices to the Academy's
                     homepage of its website disclosing the adequate yearly progress status and accreditation status of each school in accordance
                     with section 1280E of the Code, MCL 380.1280E.

ARTICLE VII

TUITION PROHIBITED

Section 7.1    Tuition Prohibited: Fees and Expenses. The Academy shall not charge tuition. The Academy may impose fees and require
                     payment of expenses for activities of the Academy where such fees and payments are not prohibited by law.

ARTICLE VIII

COMPLIANCE WITH PART 6A OF THE CODE AND OTHER LAWS

Section 8.1    Compliance with Part 6 of the Code. The Academy shall comply with Part 6a of the Code.

Section 8.2    Compliance with State School Aid Act. In order to assure that funds are available for the education of pupils, the Academy shall
                     shall comply with all applicable provisions of the State School Aid Act of 1979, as amended from time to time. The Academy
                     may expend funds from the State School Aid Act for any purpose permitted by the State School Aid Act of 1979 and may
                     enter into contracts and agreements determined by the Academy as consistent with the purposes for which the funds were
                     appropriated.

Section 8.3    Open Meetings Act. Pursuant to Section 503(6)(a) of the Code, the Academy Board shall conduct all of its meetings in
                     accordance with the Michigan Open Meetings Act, Act No. 267 of the Public Acts of 1976, as amended, being Sections
                     15,261 to 15.275 of the Michigan Compiled Laws.

Section 8.4    Freedom of Information Act. Pursuant to Section 503(6)(b) of the Code, the records of the Academy shall be records subject
                     to the provisions of the Michigan Freedom of Information Act ("FOIA"), Act No. 442 of the Public Acts of 1976, as amended,
                     Sections 15.231 to 15.246 of the Michigan Compiled Laws. The Academy Board shall designate a freedom of information
                     coordinator to assure compliance with FOIA and other applicable law providing for public disclosure or for protection of
                     privacy.

Section 8.5    Public Employees Relation Act. Pursuant to section 503(6)(c) of the Code, the Academy shall comply with Act No. 336 of the
                     Acts of 1947, being Sections 423.201 to 423.217 of the Michigan Compiled Laws. Organizational efforts and collective
                     bargaining agreements, if any, with employees of the Academy shall be the responsibility of the Academy.

Section 8.6    Prevailing Wage on State Contracts. The Academy shall comply with the Prevailing Wage on State Contracts statute,
                     Act No. 166 of the Public Acts of 165, being Sections 408.551 to 408.558 of the Michigan Compiled Laws.

Section 8.7    Uniform Budgeting and Accounting Act. The Academy shall comply with the Uniform Budgeting and Accounting Act No. 2
                     of the Public Acts of 1968, being MCL 141.421 to 141.440a.

Section 8.8    Revised Municipal Finance Act of 2001. With respect to the Academy's borrowing money and issuance of bonds, the
                     Academy shall comply with section 1351a of the Code and Part VI of the Revised Municipal Finance Act of 2001,
                     Act No. 34 of the Public Acts of 2001, being MCl 141.2601 to 141.2613 of the Michigan Compiled Laws, except that the
                     borrowing of money and issuance of bonds by the Academy is not subject to section 1351a(4) or section 1351(2) to (4) of the
                     Code. Bond issued by the Academy are subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.

Section 8.9    Non-discrimination. The Academy shall be separately responsible for compliance with applicable laws pertaining to equal
                     opportunity and anti-discrimination laws such as the Elliot-Larsen Civil Rights Act, Act No. 453 of the Public Acts of 1976, as
                     amended, being MCL 37.2101 to 37.2804, the Michigan Handicappers' Civil Rights Act, Act No. 22 of the Public Acts of 1976
                     as amended, being MCL 37.1101 to 37.1607, and Subtitle A of Title II of the Americans with Disabilities Act of 1990,
                     Public Law 101-335, 42 USC & 12101 et seq. or any successor law.

Section 8.10  Other State Laws. The Academy shall comply with other state laws which are applicable to public school academies. Nothing
                     in this Contract shall be deemed to apply any other state law to the Academy.

Section 8.11  Federal Laws. The Academy shall comply with federal laws which are applicable to public school academies. Nothing in this
                     Contract shall be deemed to apply any other federal law to the Academy.

ARTICLE IX

AMENDMENT

Section 9.1    Process for Amending the Contract. Either party may propose changes in this Contract or may propose a meeting to discuss
                     potential revision of this Contract. Except as provided in Sections 2.1, 5.1 and 6.11, the University Board delegates to its
                     University President the review and approval of changes or amendments to this Contract. The Academy Board may delegate
                     the same authority to the Academy Board President. The Contract shall be amended upon agreement and approval of the
                     respective authorized designees.

Section 9.2    Process for Amending Academy Articles of Incorporation. The Academy Board, or any authorized designee of the Academy
                     Board, may propose changes to the Academy's Restated Articles of Incorporation. The Academy shall be authorized to make
                     such changes to its Articles upon approval by the President or Designee of the University after review and recommendation by
                     the University's Legal Counsel. Upon University approval, the Academy Board's authorized designee is authorized to file the
                     amendment to the Academy's Restated Articles of Incorporation with the Michigan Department of Labor and Economic
                     Growth, Bureau of Commercial Services. Upon receipt of the filed amendment, the Academy shall forward the filed amendment to
                     the University Charter Schools Office. The filed amendment shall be automatically incorporated into Schedule 2 of this Contract
                     upon receipt of the amendment by the University Charter Schools Office. If the University identifies a provision in the Restates
                     Articles of Incorporation that violates or conflicts with this Contract, due to a change in law or for other reasons, after approval
                     has been given, it shall notify the Academy Board in writing and the Academy Board shall amend the Restated Articles or
                     Incorporation to make them consistent with the Contract. If the change is requested by the University, the University shall
                     reimburse the Academy for the filing fees payable to the Michigan Department of Labor and Economic Growth.

Section 9.3    Process for Amending Academy Bylaws. The Academy Board shall submit proposed Bylaw changes to the Charter School
                     Office, for review and comments, at least thirty (30) days prior to Academy Board adoption. The Academy's Bylaws, and any
                     subsequent or proposed changes to the Academy's Bylaws, shall not violate or conflict with the Contract. If at any time the
                     University identifies a provision in the Academy Board's Bylaws that violates or conflicts with Applicable Law or this Contract,
                     the Academy's Board's Bylaws shall be automatically void and the Academy Board shall amend the identified provision to be
                     consistent with Applicable Law and the Contract. The amendment shall be automatically incorporated into Schedule 3 of the
                     Contract upon receipt by the University Charter Schools Office of a duly authorized Academy Board Bylaw change made in
                     accordance with this Section 9.3.

Section 9.4    Change in Existing Law. If, after the effective date of this Contract, there is a change in Applicable Law, which alters or amends
                     the responsibilities and obligations of either the Academy or the University Board, this Contract shall be altered or amended to
                     reflect the change in existing laws as of the effective date of such change. To the extent possible, the responsibilities and
                     obligations of the Academy and the University Board shall conform to and be carried out in accordance with the change in
                     Applicable Law.

ARTICLE X

TERMINATION, SUSPENSION AND REVOCATION

Section 10.1  Grounds and Procedures for Academy Termination of Contract. At anytime and for any reason, the Academy Board may
                      terminate this Contract. The Academy Board shall notify the CSO Director in writing of the request for the termination of the
                      Contract not less than ten (10) calendar months in advance of the effective date of termination. The University Board, in its
                      sole discretion may waive the ten (10) month requirement. A copy of the Academy Board's resolution approving the Contract
                      termination, including a summary of the reasons for terminating the Contract, shall be included with the written termination request.

Section 10.2  Termination by University Board. The University Board may terminate this Contract before the end of the Contract Term as
                      follows:

                (a) Termination Without Cause. Except as otherwise provided in subsections (b),(c) or (d), the University Board, in its sole discretion
                      reserves the right to terminate this Contract before the end of the Contract Term for any reason provided that such termination
                      shall not take place less than ten (10) calendar months from the date of the University Board's resolution approving such
                      termination to the Academy. If during the period between the University Board's action to terminate and the effective date of
                      termination, the Academy has violated the Contract or Applicable Law, the University Boars may elect to initiate suspension or
                      revocation of the Contract as set forth in this Article X.

                (b) Termination Caused by Change in Applicable Law. Following issuance of this Contract, if there is a change in Applicable Law
                      that the University Board, in its sole discretion, determines impairs its rights and obligations under the Contract or requires the
                      University Board to make changes in the Contract that are not in the best interest of the University Board or the University, then
                      the University Board may terminate the Contract at the end of the Academy's school fiscal year in which the University Board's
                      decision to terminate is adopted. For purposes of this section, a change in Applicable Law includes without limitation the
                      following:

                            (i)     the issuance of an order by the Superintendent of Public Instruction, pursuant to Section 1280c of the Code, placing the
                                    Academy under the supervision of the State School Reform/Redesign Officer; or

                            (ii)    the development of, or changes to, a redesign plan by the Academy pursuant to Section 1280c of the Code.

                (c)  Automatic Termination Caused By Placement of Academy in State School Reform/Redesign School District. If the Academy is
                      notified by the State that the Academy will be placed in the State School Reform/Redesign School District pursuant to Section
                      1280c of the Code, then the University Board may terminate this Contract at the end of the current school year.

                (d)  Automatic Termination For Failure to Satisfy Requirements During the Initial Term of Contract. If the Academy fails to satisfy the
                      requirements set forth in Section 12.14 during the initial term of Contract, then this Contract shall automatically terminate on the
                      date set forth in Section 12.14.

            The revocation procedures in Section 10.6 shall not apply to a termination of this Contract under this section.

Section 10.3  Contract Suspension. The University Board's process for suspending the Contract is as follows.

                a)  University President Action. If the University President determines, in his or her sole discretion, that conditions or circumstances
                     exist that the Academy Board (i) has placed the health or safety of the staff and/or students at risk; (ii) is not properly exercising
                     its fiduciary obligations to protect and preserve the Academy's public funds and property; (iii) has lost its right to occupancy of the
                     of the physical facilities described in Section 6.11, and cannot find another suitable physical facility for the Academy prior to the
                     expiration or termination of its right to occupy its existing physical facilities; or (iv) has willfully or intentionally violated this Contract
                     or Applicable Law, the University President may immediately suspend the Contract. If the conditions or circumstances involve an
                     alleged violation of Sections 10.5(e) or (f), the University President is authorized to suspend the Contract immediately pending
                     completion of the procedures set forth in Section 10.6. Unless otherwise specified in the suspension notice, the Academy shall
                     cease operations on the date on which the suspension notice is issued. A copy of the suspension notice setting forth the grounds
                     for suspension, shall be sent to the Academy Board and to the Hearing Panel if applicable. If this subsection is implemented, the
                     notice and hearing procedures set forth in Section 10.6 shall be expedited as much as possible.

                b)  Disposition of State School Aid Funds. notwithstanding any other provision of the Contract, any state school aid funds
                     received by the University Board after a decision by the University President to suspend the Contract may be retained by
                     University Board for the Academy until the Contract is reinstated, or shall be returned to the Michigan Department of Treasury.

                c)  Immediate Revocation Proceeding. If the Academy Board, after receiving a Suspension Notice from the University President
                     continues to engage in conduct or activities that are covered by the suspension notice, the Hearing Panel may immediately convene
                     a Revocation Hearing in accordance with the procedures set forth in Section 10.6(e) of the Terms and Conditions. The Hearing
                     Panel ahs the authority to accelerate the time line for revoking the Contract, provided that notice of the revocation hearing shall be
                     provided to the University Charter Schools Office and the Academy Board at least five (5) days before the hearing. If the
                     Hearing Panel determines that the Academy Board has continued to engage in conduct or activities that are covered by the
                     suspension notice, the Hearing Panel may recommend revocation of the Contract. The University Board shall proceed to consider
                     the Hearing Panel's recommendation in accordance with Section 10.6(f) through (i).

Section 10.4  Statutory Grounds for Revocation. In addition to the grounds for an automatic revocation of the Contract as set forth in
                     Section 10.7, this contract may also be revoked by the University Board upon a determination by the University Board, pursuant
                     to the procedures set forth in Section 10.6, that one or more of the following has occurred:

                a)  Failure of the Academy to demonstrate improved pupil academic achievement for all groups of pupils or meet the educational
                     goals set forth in this Contract;

                b)  Failure of the Academy to comply with all Applicable Law;

                c)  Failure of the Academy to meet generally accepted public sector accounting principles and demonstrate sound fiscal
                     stewardship; or

                d)  The existence of one or more other grounds for revocation as specified in this Contract.

Section 10.5  Other Grounds for University Board Revocation. In addition to the statutory grounds for revocation set forth in Section 10.4
                      and the grounds for an automatic revocation of the Contract set forth in Section 10.7, the University Board may revoke this
                      Contract,  pursuant to the procedures set forth in Section 10.6, upon a determination that one or more of the following
                      has occurred:

                a)  The Academy is insolvent, has been adjudged bankrupt, or has operated for one or more school fiscal year(s) with a Fund
                     Balance Deficit;

                b)  The Academy has insufficient enrollment to successfully operate the Academy, or the Academy has lost more than twenty-five
                     percent (25%) of its student enrollment from the previous school year;

                c)  The Academy defaults in any of the terms, conditions, promises or representations contained in or incorporated into this Contract.

                d)  The Academy files amendments to its Articles of Incorporation with the Michigan Department of Labor and Economic Growth,
                     Bureau of Commercial Services, without first obtaining University Board approval;

                e)  The University Board discovers grossly negligent, fraudulent or criminal conduct by the Applicant, the Academy's directors,
                     officers, employees or agents in relation to their performance under this Contract;

                f)  The Applicant, the Academy's directors, officers or employees have provided false or misleading information or documentation
                     to the University Board in connection with the University Board's approval of the Application, the issuance of this Contract, or
                     or the Academy's reporting requirements under this Contract or Applicable Law;

                g)  The Academy violates the site restrictions set forth in the Contract or the Academy operates at a site or sites without the prior
                     written authorization of the University Board; or

                h)  The University Board, its trustees, officers, employees, agents or representatives are not included as third party beneficiaries
                     under any educational management agreement entered into by the Academy for purposes of indemnifying such parties in
                     accordance with Section 11.11 of the Terms and Conditions.

Section 10.6  University Board Procedures for Revoking Contract. Except for the automatic revocation process set forth in Section 10.7 or
                     or the termination of Contract by the University Board in Section 10.2, the University Board's process for revoking the
                     Contract is as follows:

                a) Notice of Intent to Revoke. The CSO Director or other University representative, upon reasonable belief that such grounds for
                    revocation of the Contract exist, shall notify the Academy Board of such grounds by issuing the Academy Board a Notice of
                    Intent to Revoke for non-compliance with the Contract or Applicable Law. The Notice of intent to Revoke shall be in writing
                    and shall set forth in sufficient detail the alleged grounds for revocation.

                b) Academy Boards Response. Within thirty (30) days of receipt of the Notice of Intent to Revoke, the Academy Board shall respond
                    in writing to the alleged grounds for revocation. The Academy Board's response shall be addressed to the CSO Director, and shall either
                    admit or deny the allegations of non-compliance. If the Academy Board's plan and time line for correcting the non-compliance with the Contract
                    or Applicable Law. If the Academy's response includes a denial on non-compliance with the Contract or Applicable Law, the
                    Academy's response shall include sufficient documentation or other evidence to support a denial on non-compliance with the
                    Contract of Applicable Law. A response not in compliance with this section shall be deemed to be non-responsive. As part of its
                    response, the Academy Board may request that a meeting be scheduled with the SCO Director prior to a review of the
                    Academy Board's response.

                c) Plan of Correction. Within fifteen 915) days of receipt of the Academy Board's response or after a meeting with Academy Board
                    representatives, whichever is sooner, the CSO Director shall review the Academy Board's response and determine whether a
                    a reasonable plan for correcting the deficiencies can be formulated. If the CSO Director determines that a reasonable plan for
                    correcting the deficiencies set forth in the Notice of Intent to Revoke can be formulated, the CSO Director shall develop a plan for
                    correcting the non-compliance ("Plan of Correction"). In developing a Plan of Correction, the CSO Director is permitted to adopt,
                    modify or reject some or all of the Academy Board's response for correcting the deficiencies outlined in the Notice of Intent to
                    Revoke. The Notice of Intent to Revoke shall be withdrawn if the CSO Director determines any of the following: (i) the Academy
                    Board's denial of non-compliance is persuasive; (ii) the non-compliance set forth in the Notice of Intent to Revoke has been
                    corrected by the Academy Board; or (iii) the Academy Board has successfully completed the Plan of Correction. In the even the
                    Notice of Intent to Revoke is withdrawn, the CSO Director shall notify the Academy Board, in writing, of such withdrawal.

                d) Plan of Correction May Include Conditions to Satisfy University Board's Contract Reconstitution Obligation. As part of the Plan of
                    Correction, the CSO Director may reconstitute the Academy in an effort to improve student educational performance and to avoid
                    interruption of the educational process. An attempt to improve student educational performance may include, but is not limited to,
                    one of the following actions: (i) removal of 1 or more members of the Academy Board members; (ii) termination of at-will board
                    appointment of 1 or more Academy Board members; (iii) withdrawal of the Academy's authorization to contract with an ESP; or
                    (iv) the appointment of a new Academy Board of directors or a conservator/trustee to take over operations of the Academy.
                    The University Charter Schools Office shall notify the Superintendent of Public Instruction of any Plan of Correction that includes
                    a reconstitution of the Academy to ensure that the Academy is not included on the list of school buildings subject to automatic
                    closure under section 1280c of the Code.

                e)  Request for Revocation Hearing. The CSO Director or other University representative may initiate a revocation hearing before
                     the University Charter Schools Hearing Panel if the CSO Director determines that any of the following has occurred:

                            i)    the Academy Board has failed to timely respond to the Notice of Intent to Revoke as set forth in Section 10.6(b);
                            ii)   the Academy Board's response to the Notice of Intent to Revoke is non-responsive;
                            iii)  the Academy Board's response admits violations of the Contract or Applicable Law which the CSO Director deems
                                  cannot be remedied or cannot be remedied in an appropriate period of time, or for which the CSO Director determines
                                  that a Plan of Correction cannot be formulated;
                            iv)   the Academy Board's response contains denials that are not supported by sufficient documentation or other evidence
                                   showing compliance with the Contract or Applicable Law;
                            v)    the Academy Board has not complied with part or all of a Plan of Correction established in Section 10.6(c);
                            vi)   the Academy Board has engaged in actions that jeopardize the financial or educational integrity of the Academy; or
                            vii)   the Academy Board has been issued multiple or repeated Notices of Intent to Revoke.

                            The CSO Director or other University representative shall send a copy of the Request for Revocation Hearing to the
                            Academy Board at the same time the request is sent to the Hearing Panel. The Request for Revocation Hearing shall
                            identify the reasons for revoking the Contract.

                    f) Hearing before University Charter Schools Hearing Panel. Within thirty (30) days of the date of a Request for Revocation
                       Hearing , the Hearing Panel shall convene a revocation hearing. The Hearing Panel shall provide a copy of the Notice of
                       Hearing to the University Charter Schools Office and the Academy Board at least ten (10) days before the hearing. The purpose
                       of the Hearing Panel is to gather facts surrounding the CSO Director's request for Contract revocation, and to make a
                       recommendation to the University Board on whether the Contract should be revoked. The revocation hearing shall be held at a
                       location, date and time as determined by a court reporter and the cost of the court reporter shall be divided equally between the
                       University and the Academy. The CSO Director or his or her designee, and the Academy Board or its designee, shall each have
                       equal time to make their presentation to the Hearing Panel. Although each party is permitted to submit affidavits and exhibits in
                       support of their positions, the Hearing Panel will not hear testimony from any witnesses for either side. The Hearing Panel, may,
                       however, question the CSO Director and one or more members of the Academy Board. Within thirty (30) days of the
                       Revocation Hearing, the Hearing Panel shall make a recommendation to the University Board concerning the revocation of the
                       Contract. In its discretion, the Hearing Panel may extend any time deadline set forth in this subsection. A copy of the Hearing
                       Panel's recommendation shall be provided to the University Charter Schools Office and the Academy Board at the same time the
                       recommendation is sent to the University Board.

                    g) University Board Decision. If the Hearing Panel's recommendation is submitted to the University Board at least fourteen (14)
                        days before the University Board's next regular meeting, the University Board shall consider the Hearing Panel's
                        recommendation at its next regular meeting and vote on whether to revoke the Contract. The University Board reserves the right
                        to modify, reject or approve all of any part of the Hearing Panel's recommendation. The University Board shall have available
                        copies of the Hearing Panel's recommendation and the transcript of the hearing. The University Board may waive the
                        fourteen (14) day submission requirement or hold a special board meeting to consider the Hearing Panel's recommendation.
                        A copy of the University Board's decision shall be provided to the University Charter Schools Office, the Academy Board and
                        and the Michigan Department of Education.

                    h) Effective Date of Revocation. If the University Board votes to revoke the Contract, the revocation shall be effective on the date
                        of the University Board's act of revocation, or at a later date as determined by the University Board, but no later than the last
                        day of the Academy's current academic year.

                    i) Disposition of State School Aid Funds. Notwithstanding any other provision of the Contract, any state school aid funds received
                       by the University Board after a recommendation is made by the Hearing Panel to revoke the Contract, or a decision by the
                       the University Board to revoke the Contract, may be held by the University Board and returned to the Michigan Department
                       of Treasury.

                    j) Disposition of District Code Number. Notwithstanding any other provision of the Contract, after a recommendation is made by
                       the Hearing Panel to revoke the Contract, or a decision by the University Board to revoke the Contract, the district code
                       number shall remain under the direction and control of the State Board of Education and/or its designated representative.

Section 10.7  Automatic Revocation by State of Michigan. If the University Board is notified by the Superintendent of Public Instruction that
                     the Academy is subject to closure under Part 6a of the Code ("state's Automatic Closure Notice"), and the Academy is
                     currently not undergoing a reconstitution as part of a Plan of Correction developed under Section 10.6, then this Contract shall
                     automatically be amended to eliminate the Academy's authority to operate certain age and grade levels at the site or sites
                     identified in the State's Automatic Closure Notice. If the state's Automatic Closure Notice includes all of the Academy's existing
                     sites, then this Contract shall automatically be revoked at the end of the current school year in which the notice is received without
                     any further action of the University Board or the Academy. The University Board's revocation procedures set forth in Section 10.6
                     do not apply to an automatic revocation initiated by the State.
       
                     Following receipt of the State's Automatic Closure Notice, the University Charter Schools Office shall forward a copy of the
                     State's Automatic Closure Notice to the Academy Board and request a meeting with Academy Board representatives to discuss
                     Academy's plans and procedures for the elimination of certain age or grade levels at the identified site or sites, or if all of the
                     Academy's existing sites are included in the State's Automatic Closure Notice, then wind-up and dissolution of the Academy
                     corporation at the end of the current school year. All Academy inquiries and requests for reconsideration of the State's
                     Automatic Revocation notice shall be directed to the Superintendent of Public Instruction, in a form and manner determined by
                     that office or the Michigan Department of Education.

Section 10.8  Material Breach of Contract. the issuance of an order by the Superintendent of Public Instruction, pursuant to section 1280C of
                     the Code, placing the Academy under the supervision of the State School Reform/Redesign Officer, shall constitute a material
                     breach of this Contract. Following the issuance of the order, the University Charter Schools Office shall notify the Academy of the
                     material breach and request a meeting with Academy Board representatives to discuss the matter. To remedy the material breach,
                     the Academy shall work toward the development of a corrective action plan that is acceptable to the University Charter Schools
                     Office. In addition to other matters, the corrective action plan shall include the Academy's redesign plan prepared pursuant to
                     section 1280C of the Code. The development of a corrective action plan under this Section 10.8 shall not in any way limit the
                     rights of the University Board to terminate, suspend, or revoke this Contract.

Section 10.9  Appointment of Conservator/Trustee. Notwithstanding any other provision of the Contract, when the University Board
                     determines that conditions or circumstances exist to lead the University Board to believe that the health, safety, educational
                     or economic interest of the Academy or its students is a risk, the University Board may take immediate action against the
                     Academy pending completion of the procedures describes in Sections 10.6. The University Board may appoint a
                     conservator/trustee to manage the day-to-day operations of the Academy in place of the Academy Board. A conservator/trustee
                     appointed by the University Board shall have all the powers and authority of the Academy Board under this Contract and
                     Applicable Law. Upon the appointment of a conservator/trustee, the appointment and term of office for each Academy Board
                     member shall cease. If this section has been implemented and the Hearing Panel under Section 10.6 determines the revocation
                     to be appropriate, the revocation shall become effective immediately upon the University Board's decision.

ARTICLE XI

PROVISIONS RELATING TO PUBLIC SCHOOL ACADEMIES

Section 11.1  Grand Valley State University Faculty Employment in the Academy. Subject to the ability of the Academy to reach separate
                     agreement on the terms, the Academy is permitted to use University faculty as classroom teachers in any grade.

Section 11.2  The Academy Faculty Appointment to Grand Valley State University Faculty. Nothing in this Contract shall prohibit a member of
                     the Academy faculty from being appointed to or serving as a member of the University faculty.

Section 11.3  Student Conduct and Discipline. The Academy Board shall adopt, abide by and enforce its own set of written policies concerning
                     student conduct and student discipline.

Section 11.4  Insurance. The Academy shall secure and maintain in its own name as the "first names insured" at all times the following insurance
                     coverage:

                    a)  Property insurance covering all of the Academy's real and personal property, whether owned or leased;

                    b)  General/Public Liability with a minimum of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000)
                          aggregate (Occurrence Form);

                    c)  Auto Liability (Owned and Non-Owned) with a minimum of one million dollars ($1,000,000) (Occurrence Form);

                    d)  Workers' Compensation insurance (statutory limits) and Employers' Liability insurance with a minimum of one million dollars
                          ($1,000,000); if the Academy has no employees or leases employees, it must carry Workers' Compensation insurance
                          (statutory limits) on an "if any" basis including Employers' Liability limits of one million dollars ($1,000,000).

                    e)  Error &Omissions insurance including Directors & Officers and School Leaders Errors & Omissions Liability insurance with a
                         a minimum of one million dollars ($1,000,000) per occurrence and three million dollars ($3,000,000) aggregate (Claims Made
                         or Occurrence Form);

                    f)  Crime including employee dishonesty insurance with a minimum of five hundred thousand dollars ($500,000); and

                    g)  Employment Practices Liability insurance with a minimum of one million dollars ($1,000,000) per claim/aggregate
                         (Claims Made or Occurrence Form).

                    The insurance must be obtained from a licensed mutual, stock, or other responsible company licensed to do business in the State of
                    Michigan. The insurance carrier(s) must be an "A" best rating or better. The Academy may join with other public school academies
                    to obtain insurance if the Academy finds that such an association provides economic advantages to the Academy, provided that
                    each Academy maintains its identity as first named insured.

                    The Academy shall list the University Board and the University on the insurance policies as an additional insured with primary coverage
                    on insurance coverage listed in (b), (c), (e), and (g) above. The Academy shall have a provision included in all policies requiring
                    notice to the University at least thirty (30) days in advance upon termination or non-renewal of the policy or of changes in insurance
                    carrier or policy limit changes. In addition, the Academy shall provide the University President copies of all insurance certificates and
                    endorsements required by this Contract. The Academy shall also provide to the University Charter Schools Office an entire copy of the
                    insurance policies. The Academy may expend funds for payment of the cost of participation in an accident or medical insurance
                    program to insure protection for pupils while attending school or participating in a school program or activity. Other insurance policies
                    and higher minimum may be required depending upon academic offerings and program requirements.

                    The Academy understands that the University's insurance carrier periodically reviews the types and amounts of insurance
                    coverage that the Academy must secure in order for the University to  maintain insurance coverage for authorization and oversight
                    of the Academy. In the event that the University's insurance carrier requests additional changes in coverage identified in this
                    Section 11.4, the Academy agrees to comply with any additional changes in the types and amounts of coverage requested by the
                    University's insurance carrier within thirty (30) days after notice of the insurance coverage change.

Section 11.5 Transportation. The Academy Board may enter into contract with other school districts or other persons, including municipal and
                    county governments, for the transportation of the Academy students to and from school and for field trips. In addition, the
                    Academy Board may use funds received from state school aid payments to pay for student transportation.  In the event that the
                    Academy Board contracts for transportation services, the Academy Board shall ensure that the company providing the
                    transportation services, is properly licensed in accordance with Applicable Law, and that the company conduct criminal
                    background and history checks on its drivers and other personnel who have direct contact with pupils in accordance with the Code.

Section 11.6 Extracurricular Activities and Interscholastic Sports. The Academy is authorized to join any organization, association, or league,
                    which has as its objective the promotion and regulation of sport and athletic, oratorical, musical, dramatic, creative arts, or other
                    contests by or between pupils.

Section 11.7 Legal Liabilities and Covenants Not to Sue. the Academy and Academy Board members acknowledge and agree that they have
                    no authority to extend the faith and credit of the University or to enter into a contract that would bind the University. The Academy also
                    is limited in its authority to contract by the amount of funds obtained from the state school aid fund, as provided hereunder, or from
                    other independent sources. The Academy and Academy Board members hereby covenant not to sue the University Board, the
                    University or any of its trustees, officers, employees, agents or representatives for any matters that arise under this Contract or
                    otherwise. The University does not assume any obligation with respect to any Academy Director, employee, agent, parent,
                    guardian, or independent contractor of the Academy, and no such person shall have the right or standing to bring suit against the
                    University Board, the University or any of its Trustees, employees, agents, or independent contractors as a result of the issuing,
                    termination or revocation of this Contract.

Section 11.8 Lease or Deed for Proposed Single Site(s). The Academy shall provide to the designee of the University Board copies of its lease
                    or deed for the premises in which the Academy shall operate. A copy of the Academy's lease or deed and site information
                    shall be incorporated into the Schedules.

Section 11.9 Occupancy and Safety Certificates. The Academy Board shall: (i) ensure that all physical facilities comply with all fire, health and
                    safety standards applicable to schools; and (ii) possess the necessary occupancy and safety certificates. The Academy Board
                    shall not conduct classes at any site until the Academy has complied with this Section 11.9. Copies of these certificates shall be
                    incorporated into the Schedules.

Section 11.10 Deposit of Public Funds by the Academy. The Academy Board agrees to comply with Section 1221 of the Revised School
                      Code, being MCL 380.1221, regarding the deposit of all public or private funds received by the Academy. Such deposit shall be
                      made within three (3) business days after receipt of the funds by the Academy.   

Section 11.11 Educational Service Provider Agreements. The Academy may enter into an ESP Agreement with an ESP to contract out its
                      administrative and/or educational functions and personnel. For the purposes of this Contract, an employee leasing agreement shall
                      be considered an ESP Agreement, and an employee leasing company shall be considered an ESP. Prior to entering any ESP
                      Agreement with an ESP, the Academy shall submit a copy of the final draft ESP Agreement to the University Charter Schools
                      Office in form or manner consistent with the ESP policies of the University Charter Schools Office, which are incorporated into
                      and be deemed part of this Contract. The Charter Schools Office may, from time to time during the term of this Contract, amend
                      the ESP policies and the amended policies shall automatically apply to the Academy without any amendment under Article IX of
                      this Contract. The University Charter Schools Office may disapprove the proposed ESP Agreement submitted by the Academy if
                      the ESP Agreement is contrary to this Contract or Applicable Law. Any subsequent amendment to an ESP Agreement shall be
                      submitted for review by the University Charter Schools Office in the same form and manner as a new ESP Agreement.        

Section 11.12 Required Provisions for Education Service Provider Agreement. Any ESP agreement entered into by the Academy must contain
                      the following provisions:

                    "Indemnification of Grand Valley State University. The parties acknowledge and agree that the Grand Valley State University Board
                    of Trustees, Grand Valley State University and its members, officers, employees, agents or representatives are deemed to be third
                    party beneficiaries for purposes of this Agreement. As third party beneficiaries, the parties hereby promise to indemnify and hold
                    harmless Grand Valley State University Board or Trustees, Grand Valley State University and its members, officers, employees,
                    agents or representatives from all claims, demands, or liability, including attorney fees, and related expenses, on account of injury,
                    sickness, disease, death, property loss or damage or any other losses of any kind whatsoever and not caused by the sole
                    negligence of Grand Valley State University, which arise out of or are in any manner connected with Grand Valley State University
                    Board's approval of the Application, the University Board's consideration of or issuance of a Contract, the Academy's preparation
                    for and operation of a public school, or which are incurred as a result of the reliance by Grand Valley State University and its
                    Board of Trustees members, officers, employees, agents or representatives upon information supplied by the Academy or the ESP
                    or which arise out of the failure of the Academy to perform its obligations under the Contract issued to the Academy by Grand
                    Valley State University Board of Trustees. The parties expressly acknowledge and agree that Grand Valley State University and its
                    Board of Trustee members, officer, employees, agents or representatives may commence legal action against either party to
                    enforce its rights as set forth in this Agreement."

                    "Revocation or Termination of Contract. If the Academy's Contract issued by the Grand Valley State University Board of Trustees
                    is revoked or terminated, this Agreement shall automatically terminate on the same date as the Academy's Contract is revoked       
                    or termination without further action of the parties."

                    "Compliance with Academy's Contract. The ESP agrees to perform its duties and responsibilities under this Agreement in a manner
                    that is consistent with the Academy's obligations under the Academy's Contract issued by Grand Valley State University Board
                    of Trustees. The provisions of the Academy's Contract shall supersede any competing or conflicting provisions contained in this
                    Agreement."

                    "Compliance with Section 503c. On an annual basis, the ESP agrees to provide the Academy Board with the same information that
                    a school district is required to disclose under section 18(2) of the State School Aid Act of 1979, MCL 388,1618, for the most
                    recent school fiscal year for which the information is available. Within thirty (300 days of receipt of this information, the Academy
                    Board shall make the information available on the Academy's website home page, in a form and manner prescribed by the Michigan
                    Department of Education. The defined terms in section 503c of the Code, MCl 380.503c, shall have the same meaning in this
                    Agreement."

Section 11.13 Incompatible Public Offices and Conflicts of Interest Statutes. The Academy shall comply with the Incompatible Public Offices
                      statute, Act No. 566 of the Public Acts of 1978, being MCL 15.181 to 15.185 of the Michigan Compiled Laws, and the Contracts
                      of Public Servants With Public Entities statute, Act No. 317 of the Public Acts of  1968, being MCL 15.321 to 15.330 of the
                      Michigan Compiled Laws. The Academy Board shall ensure compliance with Applicable Law relating to conflicts of interest.
                      Notwithstanding any other provision of this Contract, the following shall be deemed a prohibited conflict of interest for purposes
                      of this Contract:

                    (a)  An individual simultaneously serving as an Academy Board member and an owner, officer, director, employee or consultant of
                          an educational service provider or an employee leasing company that has an ESP agreement with the Academy;

                    (b)  An individual simultaneously serving as an Academy Board member and an Academy employee;

                    (c)  An individual simultaneously service as an Academy Board member and an independent contractor to the Academy;

                    (d)  An individual simultaneously serving as an Academy Board member and as a member of the governing board of another
                           public school; and

                    (e)  An individual simultaneously serving as an Academy Board member and a University employee, official, or consultant, to
                          the University.

Section 11.14  Certain Familial Relationships Prohibited. The Academy Board shall prohibit specifically identified family relationships pursuant to
                        applicable law and the Terms and Conditions of this contract. Notwithstanding any other provision of this Contract, the following
                        shall be deemed prohibited familial relationships for the purposes of this Contract:

                    (a)  No person shall be appointed or reappointed to serve as an Academy Board member if the person's mother, mother-in-law,
                          father, father-in-law, son, son-in-law, daughter, daughter-in-law, sister, sister-in-law, brother, brother-in-law, spouse or
                          same-sex partner:

                            (i)   Is employed by the Academy;
                            (ii)  Works at or is assigned to the Academy
                            (iii)  Has an ownership, officer, policy making, managerial, administrative, non-clerical or other significant role with the
                                   Academy's ESP or employee leasing company.

Section 11.15  Dual Employment Positions Prohibited. Any person working at the Academy is prohibited by law from being employed at the
                       Academy in more than one full-time position and simultaneously being compensated for each position.

Section 11.16  Oath of Public Office. Academy Board members are public officials. Before entering upon the duties of a public school board
                        member each Academy Board member shall take, sign, and file the constitutional oath of office with the Charter
                        Schools Office.

Section 11.17  Information Available to the Public and University.

                            (a)   Information to be provided by the Academy. In accordance with Applicable Law, the Academy shall make information
                                   concerning its operation and management, including without limitation information in Schedule 6, available to the public
                                   and University in the same manner and to the same extent as is required for public schools and school districts.

                            (b)   Information to be provided by Educational Service Providers. The agreement between the Academy and the ESP shall
                                   contain a provision requiring the ESP to make information concerning the operation and management of the Academy,
                                   including the information in Schedule 6, available to the Academy as deemed necessary by the Academy Board in order
                                   to enable the Academy to fully satisfy its obligations under subparagraph (a).

Section 11.18  University Board Invitation to Apply to Convert Academy to School of Excellence. If the University Board is interested in accepting
                        applications to issue contracts to charter Schools of Excellence under Part 6e of the Code, MCL 380.551 et seq. ("Part 6e"), and
                        the University Board determines that the Academy meets the University Board's and the Code's eligibility criteria for applying to
                        convert the Academy to a School of Excellence. In accordance with the Code, the University Board shall establish its own
                        competitive application process and provide the necessary forms and procedures to eligible public school academies.

ARTICLE XII

GENERAL TERMS

Section 12.1  Notices. Any and all notices permitted or required to be given hereunder shall be deemed duly given; (i) upon actual delivery, if delivery
                     by hand; or (ii) upon delivery into United States mail if delivery is by postage paid first class mail. Each such notice shall be sent to the
                     respective party at the address indicated below or to any other person or address as the respective party may designate by notice
                     delivered pursuant hereto.

                    If to Grand Valley State University Board of Trustees:

                                                Charter Schools Office Director
                                                Grand Valley State University
                                                201 Front Avenue, SW., Ste 310
                                                Grand Rapids, Michigan 49504

                    If to Academy:

                                                Board President
                                                Hanley International Academy
                                                2400 Denton Street
                                                Hamtramck, MI 48212

Section 12.2  Severability. If any provision in this Contract is help to be invalid or unenforceable, it shall be ineffective only to the extent of the
                     invalidity, without affecting or impairing the validity and enforceability of the remainder of the provision or the remaining provision
                     of this Contract. If any provision of this Contract shall be or become in violation of Applicable Law, such provision shall be
                     considered null and void, and all other provisions shall remain in full force and effect.

Section 12.3  Successors and Assigns. The terms and provisions of this Contract are binding on and shall inure to the benefit of the parties and
                     their respective successors and permitted assigns.

 

Section 12.4  Entire Contract. This Contract sets forth the entire agreement between the University Board and the Academy with respect to the
                     subject matter of this Contract. All prior application materials, contracts, representations, statements, negotiations, understandings,
                     and undertakings, are superseded by this Contract.

Section 12.5  Assignment. This Contract is not assignable by either party.

Section 12.6  Non-Waiver. Except as provided herein, no term or provision of this Contract shall be deemed waived and no breach or default
                     shall be deemed excused, unless such waiver or consent shall be in writing and signed by the party claimed to have waived or
                     consented. No consent by any party to, or waiver of, a breach or default by the other, whether expressed or implied, shall constitute
                     a consent to, waiver of, or excuse for any different or subsequent breach or default.

Section 12.7  Indemnification. As a condition to receiving a grant of authority from the University Board to operate a public school pursuant to the
                     terms and conditions of this Contract, the Academy agrees to indemnify and hold the University Board, the University and its Board
                     of Trustees members, officers, employees, agents or representatives harmless from all claims, demands, or liability, including
                     attorney fees, and related expenses, on account of injury, loss of damage, including, without limitation, claims arising from bodily
                     injury, personal injury, sickness, disease, death, property loss or damage or any other losses of any kind whatsoever and not caused
                     by the sole negligence of the University, which arise out of or are in any manner connected with the University Board's receipt,
                     consideration  or approval of the Application, the University Board's approval of the Method of Selection Resolution or the
                     Authorizing Resolution, legal challenges to the validity of Part 6a of the Code or actions taken by the University Board as an authorizing
                     body under Part 6a of the Code, the University Board's consideration of or issuance of a Contract, the Academy's preparation for
                     and operation of a public school, or which are incurred as a result of the reliance of the University Board, the University and its
                     Board of Trustees members, officers, employees, agents or representatives upon information supplied by the Academy, or which arise
                     out of the failure of the Academy to perform its obligations under this Contract. The foregoing provision shall not be deemed a
                     relinquishment or waiver of any kind of Section 7 of the Governmental Liability for Negligence Act, being Act No. 170, Public
                     Acts of Michigan, 1964.

Section 12.8  Construction. This Contract shall be construed fairly as to both parties and not in favor of or against either party, regardless of which
                     party prepared the Contract.

Section 12.9  Force Majeure. If any circumstances occur which are beyond the control of the parties, which delay or render impossible the
                     obligations of one or both of the parties, the parties' obligations to perform such services shall be postponed for an equivalent period
                     of time or shall be canceled, if such performance has been rendered impossible by such circumstances.

Section 12.10 No Third Party Rights. This Contract is made for the sole benefit of the Academy and the University Board and no other person or
                       entity, including without limitation, the ESP. Except as otherwise provided, nothing in this Contract shall create or be deemed to
                       create a relationship between the parties hereto, or either of them, and any third person, including a relationship in the nature of a
                       a third party beneficiary or fiduciary.

Section 12.11 Non-agency. It is understood that the Academy is not the agent of the University.

Section 12.12 Governing Law. This Contract shall be governed and controlled by the laws of the State of Michigan as to interpretation, enforcement,
                       validity, construction, and effect, and in all other respects.

Section 12.13 Counterparts. This Contract may be executed in any number of counterparts. Each counterpart so executed shall be deemed an
                       original, but all such counterparts shall together constitute one and the same instrument.

Section 12.14 Term of Contract.

                        (a)   Initial Term of Contract. Except as otherwise provided in Section 12.14(b) set forth below, this Contract shall commence on
                               July 1, 2012, and shall remain in full force and effect for seven (7) years until June 30, 2019, unless sooner terminated
                               according to the terms hereof.

                        (b)   Termination of Contract During Initial Term of Contract. Consistent with the procedures set forth in this Section 12.14(b),
                                this Contract will terminate on June 30, 2019, if the Academy fails to satisfy all of the following conditions:

                            (i)   The Academy shall provide to the Charter Schools Office Director a copy of the Academy's agreements with any
                                   Educational Service Provider. The terms and conditions of the agreements must be acceptable to the University President.

                            (ii)  The Academy shall provide to the Charter Schools Office Director a copy of the Academy's real property leases, sublease
                                  or other agreements set forth in the Schedules.

                            (iii)  The Academy, through legal counsel, shall provide a legal opinion to the Charter Schools Office Director confirming that
                                   the Academy Board's approval and execution of any real property lease or other agreement with Educational Service
                                   Providers complies with the Contracts of Public Servants with Public Entities statute, MCL 13.321 et seq

                            (iv)  The Academy shall provide to the Charter Schools Office Director, if applicable, a copy of an AHERA asbestos plan and
                                   and lead based paint survey for the site or sites set forth in the Schedules.

                            (v)   The Academy shall provide to the Charter Schools Office Director, if applicable, a copy of a current boiler inspections/
                                   approval for the site of sites set forth in the Schedules.

                            (vi)  The Academy shall provide documentation to the Charter Schools Office Director confirming that the Academy has
                                   received occupancy approval from the Michigan Department of Consumer and Industry Services' Office of Fire
                                   Safety for the site or sites set forth in the Schedules.

                            (vii)  The Academy shall provide documentation to the Charter Schools Office Director that it has obtained a short-term cash
                                    flow loan to cover the initial cost of operations for the initial academic year. The Academy shall comply with section 1225
                                    of the Revised School Code and the Revised Municipal Finance Act with respect to approving and obtain such funds.

                            (viii) Any additional financial information or documentation requested by the University President.

                            (ix)   If the Academy, for any reason, is unable to enroll students and conduct classes by October 1, 2012, then this Contract
                                    is automatically terminated without further action of the parties.

                    The Academy shall notify the Charter Schools Office in writing following completion of the conditions set forth in this Section 12.14(b).
                    For good cause, the Charter Schools Office Director may extend the deadlines set forth above. If the Charter Schools Office Director
                    determines that the academy has not satisfied the conditions set forth in this Section 12.14(b), the Charter Schools Office Director
                    shall issue a Contract termination letter to the Academy for failing to meet certain conditions set forth in this Section 12.14(b). The
                    issuance of the termination letter by the Charter Schools Office Director shall automatically terminate this Contract without any further
                    action by either the University board or the Academy Board. Upon issuance of the termination letter, the Charter Schools Office Director
                    shall notify the Superintendent of Public Instruction and the Michigan Department of Education that the Contract has been terminated.

                    (c)   Extend Term of Contract. If the Academy satisfies the conditions set forth above in Section 12.14(b), the Academy will be eligible
                           for consideration of a new contract term.

Section 12.15 Survival of Provisions. The terms, provisions, and representations contained in Section 11.4, Section 11.17, Section 11.12, and
                      Section 12.7, and any other provision of this Contract that by their sense and context are intended to survive termination of this
                      Contract shall survive.

Section 12.16 Termination of Responsibilities. Upon termination or revocation of this Contract, the University Board and its designees shall have
                       no further obligations or responsibilities under this Contract to the Academy or any other person or persons in connection with
                       this Contract.

Section 12.17 Disposition of Academy Assets upon Termination or Revocation of Contract. Following termination or revocation of the Contract,
                      the Academy shall follow the applicable wind-up and dissolution provisions set forth in the Academy's articles of incorporation
                      and in accordance with Applicable Law.

                                                            As the designated representative of the Grand Valley State University Board of
                                                            of Trustees, I hereby issue this Contract to the Academy on the date set for above.

                                                            GRAND VALLEY STATE UNIVERSITY BOARD OF TRUSTEES

                                                            By:_______signed_________
                                                            University President of his/her designee

                                                            As the authorized representative of the Academy, I hereby certify that the Academy is able
                                                            to comply with the Contract and all Applicable Law, and that the Academy, through its
                                                            governing board, has approved and agreed to comply with and be bound by the terms
                                                            and conditions of this Contract.

                                                            HANLEY INTERNATIONAL ACADEMY

                                                            By: ______signed___________
                                                            Academy Board President

 

SCHEDULE 1

METHOD OF SELECTION RESOLUTION
AUTHORIZING RESOLUTION

CERTIFIED COPY OF RESOLUTION ADOPTED BY THE BOARD OF TRUSTEES OF
GRAND VALLEY STATE UNIVERSITY ON APRIL 27, 2012:

Reauthorization of 6a Charter Contract - Hanley International Academy, Hamtramck (7 years)

The following resolution is proposed:

WHEREAS, the Board of Trustees of Grand Valley State University at its meeting on April 22, 2005, authorized the issuance of a contract
to charter a public school academy to Hanley International Academy (the "Academy") with an effective date of July 1, 2005; and

WHEREAS, the University's Charter Schools Office has completed its evaluation and assessment of the operation and performance of the
Academy; and

WHEREAS, the present Board of Directors of the Academy has requested the reissuance of a contract to charter as a public school academy; and

WHEREAS, the University President's designee has recommended the reissuance of a contract to charter as a public school academy to the Academy
for a seven (7) year term beginning July 1, 2012, and ending June 30, 2019;

NOW, THEREFORE, BE IT RESOLVED, that the University Board of Trustees approves and reauthorizes the execution of a contract to a charter
a public school academy to the Academy and authorizes the University President or designee to execute the contract to charter a public school
academy and related documents to the Academy for a seven (7) year term, provided that, before the execution of the contract, the University
President or designee affirms that al terms of the contract have been agreed upon and the Academy is able to comply with all terms and conditions
of the contract and applicable law. This resolution shall be incorporated in and made part of the contract as Schedule 1.

IN WITNESS WHEREOF, I have hereunto signed my name as Secretary and have caused the seal of said body corporate to be hereto affixed
this 1st day of May 2012.

Teri L. Losey, Secretary
Board of Trustees
Grand Valley State University

1 Campus Drive   Allendale, MI 49401-9403  (616)331-5000

 

SCHEDULE 2

ARTICLES OF INCORPORATION

Michigan Department of Labor & Economic Growth

Filing Endorsement

This is to Certify that the ARTICLES OF INCORPORATION-NONPROFIT

for

HANLEY INTERNATIONAL ACADEMY, INC.

ID NUMBER 788595

recieved by facsimile transmission on July 15, 2005 is hereby endorsed filed on July 19, 2005 by the Administrator. The document
is effective on the date filed, unless a subsequent effective date within 90 days after received date is stated in the document.

In testimony whereof, I have hereunto set my hand and affixed the Seal of the Department, in the City of Lansing,
this 21st day of July, 2005.
(signed)
Director Bureau of Commercial Services

MICHIGAN DEPARTMENT OF LABOR & ECONOMIC GROWTH BUREAU OF COMMERCIAL SERVICES

Date Received
Name
Address
City        State        Zip Code
Document will be returned to the name and address you enter above.
If left blank document will be mailed to the registered office.

ARTICLES OF INCORPORATION
For use by Domestic Nonprofit Corporations
(Please read information and instructions on the last page)

Pursuant to the provisions of the Michigan Nonprofit Corporation Act of 1982, as amended (the "Act"), being MCL 450.2102 et seq. and
Part 6A of the Revised School Code (the "Code"), as amended, being Sections 380.501 to 380.507 of the Michigan Compiled Laws,
the undersigned corporation executes the following Articles:

ARTICLE I

The name of the corporation is: Hanley International Academy, Inc.

The authorizing body for the corporation is: Grand Valley State University ("GVSU") Board of Trustees, ("Board of Trustees"), Campus Drive,
Allendale, Michigan 49401.

ARTICLE II

The purposes for which the corporation is organized are:

1.         Specifically, the corporation is organized for the purposes of operating as a public school academy in the State of Michigan pursuant to Part
            6A, of the Code, being Sections 380.501 to 380.507 of the Michigan Compiled Laws.

2.          The corporation, including all activities incident to its purposes, shall at all times be conducted so as to be a governmental entity pursuant to
            Section 115 of the United States Internal Revenue Code ("IRC") or any successor law. Notwithstanding any other provision of these Articles
            the corporation shall not carry on any other activity not permitted to be carried on by a governmental instrumentally exempt from federal
            income tax under Section 115 of the IRC or by a nonprofit corporation organized under the laws of the State of Michigan and subject to a
            Contract authorized under the Code.

ARTICLE III

1.         The corporation is organized on a Nonstock basis.

2.         a.     If organized on a nonstock basis the description and value of its real property assets are: (if none, insert "none")

                    Real Property: none

3.         b.     The description and value of its personal property assets are: (if none, insert "none")

                    Personal Property: none

4.         c.     The corporation is to be financed under the following general plan:

                                    a. State school aid payments received pursuant to the State School Ald Act of 1979 or any successor law.
                                    b. Federal Funds
                                    c. Donations
                                    d. Fees and charges permitted to be charged by public school academies
                                    e. Other funds lawfully received

            d.     The corporation is organized on a Directorship basis.

ARTICLE IV

1.            The address of the initial registered office is:
                2609 Poland Hamtramck, Michigan 48212

2.             The mailing address of the initial registered office, if different than above:

                _______________________________________________________________________________________
                Street Address                                                    City            State                        Zip Code

3.            The name of the initial resident agent at the registered office is:
                John C. Romine

ARTICLE V

The name(s) and address(es) of the incorporator(s) is (are) as follows:

Name: Jeffrey M. Leib
Residence or Business Address: 30445 Northwestern Highway Ste 140 Farmington Hills, MI 48334

ARTICLE VI

The corporation is a governmental entity

ARTICLE VII

Before execution of a contract to charter a public school academy between the Academy Board and the Board of Trustees, the method of
selection, length of term, and the number of members of the Academy Board shall be approved by a resolution of the Board of Trustees as
required by the Code.

The members of the Academy Board shall be selected by the following method:

1.            Method of Selection and Appointment of Academy Board Members:  

                a.     Initial Academy Board member Nominations and Appointments: As part of the public school academy application the public
                        school academy applicant shall propose to the Director of the University Charter Schools Office ("Director"), the names of
                        proposed individuals to serve on the initial board of directors of the proposed public school academy. When the Director
                        recommends an initial contract for approval to the Board of Trustees he/she shall include recommendations for initial
                        Academy Board members. These recommendations may, but are not required to, include individuals proposed by the
                        public school academy applicant. To be considered for appointment, the nominees must have completed the required board
                        member candidate application materials, including at least (i) the Academy Board Member Questionnaire prescribed by the
                        University Charter Schools Office; and (ii) the Criminal Background Check Report prescribed by the University Charter
                        Schools Office.

                b.     Subsequent Academy Board Member Nominations and Appointments:
                        Except as provided in paragraph (2) below, the Academy Board may nominate individual for subsequent Academy Board of
                        Director positions. As part of the appointment process, the Academy Board may submit to the Director: (i) the name of the
                        nominee: (ii) the board member candidate application materials identified in paragraph (a) above: and (iii) a copy of the Academy
                        Board nominating resolution. The Director may or may not recommend the proposed nominee submitted by the Academy Board,
                        the Director shall select a nominee and forward that recommendation to the Board of Trustees for appointment. The Board of
                        Trustees shall have the sole and exclusive right to appoint members to the Academy Board.

                c.     Exigent Appointments: When the Director determines as "exigent condition" exists which requires him/her to make an appointment
                        to a public school academy's board of directors, the Director, with University President approval, may immediately appoint a
                        person to serve as a public school academy board member for the time specified, but no longer than the next meeting held by the
                        Board of Trustees when a regular appointment may be made by the Board of Trustees. The Director shall make the appointment
                        in writing and notify the public school academy's board of directors of the appointment. Exigent conditions include, but are not
                        limited to when an Academy Board seat is vacant, when a Academy Board cannot reach a quorum, when the Board of Trustees
                        determines that an Academy Board member's service is no longer required, when an Academy Board member is removed, when
                        an Academy Board fails to fill a vacancy, or other reasons which would prohibit the Academy Board from taking action
                        without such an appointment.

2.        Qualifications of Academy Board Members: To be qualified to serve on the Academy Board, a person shall: (a) be a citizen of the
            United States; (b) reside in the State of Michigan; (c) submit all materials requested by the GVSU Charter Schools Office including,
            but not limited to, a GVSU Academy Board Member Questionnaire and a release for criminal history background check; (d) not be
            an employee of the Academy; (e) not be a director, officer, or employee of a company or other entity that contracts with the Academy;
            and (f) not be an employee or representative of GVSU or be a member of the Board of Trustees.

3.         Oath/Acceptance of Office/Voting Rights: Following appointment by the Board of Trustees, Academy Board Appointees may begin their
            legal duties, including the right to vote, after they have signed an Acceptance of Pubic Office form and taken the Oath or Affirmation
            of Public Office administered by a member of the Academy Board, other public official or notary public.

4.         Length of Term: Removal: An appointed Academy Board member is an "at will" board member who shall serve at the pleasure of the
            Board of Trustees for a term of office not to exceed three (3) years. Regardless of the length of term, terms shall end of June 30
            of the final year of service, unless shorter due to other provisions of this resolution. A person appointed to serve as an Academy Board
            members may be reappointed to serve additional terms. When an Academy Board member is appointed to complete the term of service
            of another Academy Board member, their service ends at the end of the previous Academy Board member's tern.

            If the Board of Trustees determines that an Academy Board member's service in office is no longer required, then the Board of Trustees
            may remove an Academy board members with or without cause and shall specify the date when the Academy Board member's service
            ends. An Academy Board member may be removed from office by a two-thirds (2/3) vote of the Academy's Board for cause.

5.         Resignations: A member of the Academy Board may resign from office by submitting a written resignation or by notifying the Director.
            The resignation is effective upon receipts by the Director, unless a later date is specified in the resignation. A written notice of resignation
            is not required. If no such written notification is provided, then the Director shall confirm a resignation in writing. The resignation shall
            be effective upon the date the Director sends confirmation to the resigning Academy Board member.

6.         Vacancy: An Academy Board position shall be considered vacant when an Academy Board member:

                    a. Resigns
                    b. Dies
                    c. Is removed from office
                    d. Is convicted of a felony
                    e. Ceases to be qualified
                    f. Is incapacitated

7.         Filling a Vacancy: The Academy Board may nominate and the Director shall recommend or temporarily appoint persons to fill a vacancy
            as outlined in the "Subsequent Appointments" and "Exigent Appointments" procedures in this resolution.

8.         Number of Academy Board Member Positions: The number of member positions of the Academy Board of Directors shall be five (5)
            seven (7) or nine (9), as determined from time to time by the Academy Board.

9.         Quorum: In order to legally transact business the Academy Board shall have a quorum physically present at a duly called meeting of the
            Academy Board. A "quorum" shall be defined as follows:

                    # of Academy Board positions                            #required for Quorum
                        Five (5)                                                                Three (3)
                        Seven (7)                                                              Four (4)
                        Nine (9)                                                                Five (5)

10.        Manner of Acting: The Academy Board shall be considered to have "acted" when a duly called meeting of the Academy Board has a quorum
             present and the number of board members voting in favor of an action is as follows:

                    # of Academy Board positions                        # for Quorum                    # required to act
                        Five (5)                                                        Three (3)                            Three (3)
                        Seven (7)                                                      Four (4)                             Four (4)
                        Nine (9)                                                        Five (5)                              Five (5)

ARTICLE VIII

No part of the net earnings of the corporation shall inure to the benefit of or be distributable to its directors, board, officers or other private persons',
or organization organized and operated for a profit (except that the corporation shall be authorized and empowered to pay reasonable compensation
for services rendered and to make payments and distributions in the furtherance of the purposes set forth in Article II hereof). Notwithstanding
any other provision of these Articles, the corporation shall not carry on any other activities, not permitted to be carried on by a governmental entity
exempt from Federal Income Tax under Section 115 of the IRC, or comparable provisions of any successor law.

To the extent permitted by law, upon the dissolution of the corporation, the board shall after paying or making provisions for the payment of all of the
liabilities of the corporation, dispose of all of the assets of the corporation to the Board of Trustees for forwarding to the State School Aid Fund
established under Article IX, Section 11 of the Constitution of the State of Michigan of 1963, as amended.

ARTICLE IX

The corporation and its incorporators, board members, officers, employees, and volunteers have governmental immunity as
provided in Section 7 of Act No. 170 of the Public Acts of 1964, being Sections 691.1407 of Michigan Complied Laws.

ARTICLE X

These Articles of Incorporation shall not be amended except by the process provided in the contract executed by the
Academy Board and the Board of Trustees.

ARTICLE XI

The Academy Board shall have all the powers and duties permitted by law to manage the business, property and affairs of the corporation.

ARTICLE XII

A volunteer director is not personally liable to the corporation for monetary damages for a breach of the director's fiduciary duty.
This provision shall not eliminate or limit the liability of a director for any of the following:

            (i)    A breach of the director's duty of loyalty to the corporation;

            (ii)   Acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;

            (iii)  A violation of Section 551(1) of the Michigan Nonprofit Corporation Act;

            (iv)  A transaction from which the director derived an improper personal benefit;

            (v)   An act or omission that is grossly negligent.

If the corporation obtains tax exempt status under section 501(c)(3) of the internal revenue code, the corporation assumes all liability to any person
other than the corporation for all acts or omissions of a volunteer director occurring on or after the filing of the Articles incurred in the good faith
performance of the volunteer director's duties

This article shall not be deemed a relinquishment or waiver of any kind of Section 7 of the Government Liability for Negligence Ace, being Act No. 170, Public Acts of Michigan, 1964.

ARTICLE XIII

The corporation assumes the liability for all acts or omissions of a non-director volunteer, provided that:

            (i)    The volunteer was acting or reasonably believed he or she was acting within the scope of his or her authority;

            (ii)   The volunteer was acting in good faith;

            (iii)  The volunteer's conduct did not amount to gross negligence or willful and wanton misconduct;

            (iv)  The volunteer's conduct was not an intentional tort; and

                   The volunteer's conduct was not a tort acting out of the ownership, maintenance or use of a motor vehicle as described in
                   Section 209(e)(v) of the Michigan Nonprofit Corporation Act.

This article shall not be deemed a relinquishment or waiver of any kind of Section 7 of the Governmental Liability for negligence Act, being
Act No. 170, Public Acts of Michigan 1964.

ARTICLE XIV

The officers of the Academy Board shall be a President, Vice-President, Secretary and a Treasurer, each of whom shall be selected by the Board of
Directors. The Academy Board may select one or more Assistants to the officers, and may also appoint such other officers and agents as they may
deem necessary for the transaction of the business of the corporation.

ARTICLE XV

The Articles of Incorporation shall become effective upon  filing. However, the corporation shall not carry out the purposes set forth in Article II
unless/or until the Board of Trustees issues to the Academy Board a contract to operate as a public school academy, and the contract is executed
by both the Academy Board and the Board of Trustees.

I,(we) the incorporator(s) sign my (our) name(s) this 7th day of July, 2005

Jeffery M. Leib
(singed)

SCHEDULE 3

BYLAWS

Article I.                Name

Article II.               Form of Academy

Article III.             Offices
                            1. Principal Office
                            2. Registered Office

Article IV.            1. General Powers
                            2. Method of Selection and Appointment
                            3. Compensation

Article V.             Meetings
                            1. Regular Meetings
                            2. Special Meetings
                            3. Notice; Waiver
                            4. Open Meetings Act
                            5. Presumption of Assent

Article VI.            Committees
                            1. Committees

Article VII.           Officers of the Board
                            1. Number
                            2. Election and Term of Office
                            3. Removal
                            4. Vacancies
                            5. President
                            6. Vice-President
                            7. Secretary
                            8. Treasurer
                            9. Assistant and Acting Officers
                           10. Salaries
                           11. Filling More Than One Office

Article VIII.         Contracts, Loans, Checks and Deposits; Special Corporate Acts
                            1. Contracts
                            2. Loans
                            3. Checks, Drafts, etc
                            4. Deposits
                            5. Voting of Securities Owned by this Corporation
                            6. Contracts Between Corporation and Related Persons

Article IX.            Indemnification

Article X.             Fiscal Year, Budget and Uniform Budgeting and Accounting

Article XI.            Seal

Article XII.           Amendments

Certification

BYLAWS

OF

HANLEY INTERNATIONAL ACADEMY

ARTICLE I

Hanley International Academy

This organization shall be called Hanley International Academy (the "Academy" or the "corporation").

ARTICLE II

FORM OF ACADEMY

The Academy is organized as a non-profit, non-stock, directorship corporation.

ARTICLE III

OFFICES

Section 1.  Principal Office. The principal office of the Academy shall be located in the State of Michigan.

Section 2.  Registered Office. The registered office of the Academy shall be 2609 Poland, Hamtramck, MI 48212. It must be located in the state
of Michigan, and be the business office of the registered agents, as required by the Michigan Nonprofit Corporation Act.

ARTICLE IV

BOARD OF DIRECTORS

Section 1.  General Powers. The business, property and affairs of the Academy shall be managed by the Academy Board of Directors ("Academy
Board"). The Academy Board may exercise any and all of the powers granted to it under the Michigan Nonprofit Corporation Act or pursuant to Part 6A of the Revised School Code ("Code"). The Academy Board may delegate said powers to the officers and committees of the Academy Board as it
deems appropriate or necessary, as long as such delegation is consistent with the Articles, these Bylaws, the Contract and Applicable Law.

Section 2.  Method of Selection and Appointment. Nomination and appointment to the Academy Board shall be handled in the following manner:

                    1. Method of Selection and Appointment of Academy Board Members:

                                a.     Initial Academy Board Member Nominations and Appointments: As part of the public school academy application, the
                                        public school academy applicant shall propose to the Director of the University Charter Schools Office ("Director"), the
                                        names of proposed individuals to serve on the initial board of directors of the proposed public school academy. When
                                        the Director recommends an initial contract for approval to the Grand Valley State University Board of Trustees
                                        ("Board of Trustees"), he/she shall include recommendations for initial Academy Board members. These recommendations
                                        may, but are not required to, include individuals proposed by the public school academy applicant. To be considered for
                                        appointment, the nominees must have completed the required board member candidate application materials, including at
                                        least (i) the Academy Board Member Questionnaire prescribed by the University Charter Schools Office; and (ii) the
                                        Criminal Background Check Report prescribed by the University Charter Schools Office.

                                b.     Subsequent Academy Board Member Nominations and Appointments: Except as provided in paragraph (2) below, the
                                        Academy Board may nominate individuals for subsequent Academy Board of Director positions. As part of the
                                        appointment process, the Academy Board may submit to the Director: (i) the name of the nominee; (ii) the board member
                                        candidate application materials identified in paragraph (a) above; and (iii) a copy of the Academy Board nominating
                                        resolution. The Director may or may not recommend the proposed nominee submitted by the Academy Board. If the
                                        Director does not recommend a nominee submitted by the Academy Board, the Director shall select a nominee and
                                        forward that recommendation to the Board of Trustees for appointment. The Board of Trustees shall have the sole and
                                        exclusive right to appoint members to the Academy Board.

                                c.     Exigent Appointments: When the Director determines an "exigent condition" exists which requires him/her to make an
                                        appointment to a public school academy's board of directors, the Director, with University President approval, may
                                        immediately appoint a person to serve as a public school academy board member for the time specified, but no longer
                                        than the next meeting held by the Board of Trustees when a regular appointment may be made by the Board of
                                        Trustees. The Director shall make the appointment in writing and notify the public school academy's board of directors
                                        of the appointment. Exigent conditions include, but are not limited to when an Academy Board seat is vacant, when a
                                        Academy Board cannot reach a quorum, when the Board of Trustees determines that an Academy Board member's
                                        service is no longer required, when an Academy Board member is removed, when an Academy Board fails to fill a
                                        vacancy, or other reasons which would prohibit the Academy Board from taking action without such an appointment.

                    2.  Qualifications of Academy Board Members: To be qualified to serve on the Academy Board, a person shall: (a) be a citizen of the
                         United States; (b) reside in the State of Michigan; (c) submit all materials requested by the GVSU Charter Schools Office
                         including, but not limited to, a GVSU Academy Board Member Questionnaire and a release for criminal history background check;
                         (d) not be an employee of the Academy; (e) not be a director, officer, or employee of a company or other entity that contracts
                         with the Academy; and (f) not be an employee or representative of GVSU or be a member of the Board of Trustees.

                    3.  Oath/Acceptance of Office/Voting Rights: Following appointment by the Board of Trustees, Academy Board Appointees may begin
                         their duties, including the right to vote, after they have signed an Acceptance of Public Office form and taken the Oath of
                         Affirmation of Public Office administered by a member of the Academy Board, other public official or notary public.

                    4.  Length of Term; Removal: An appointed Academy Board member is an "at will" board member who shall serve at the pleasure of
                         of the Board of Trustees for a term of office not to exceed three (3) years. Regardless of the length of term, terms shall end on
                         June 30 of the final year of services, unless shorter due to other provisions of this resolution. A person appointed to serve as an
                         Academy Board member may be reappointed to serve additional terms. When an Academy Board member is appointment to
                         complete the term of service of another Academy Board member, their service ends at the end of the previous Academy
                         Board member's term.

                         If the Board of Trustees determines that an Academy Board member's service in office is no longer required, then the Board of
                         Trustees may remove an Academy board member with or without cause and shall specify the date when the Academy Board
                         member's service ends. An Academy Board member may be removed from office by a two-thirds (2/3) vote of the
                         Academy's Board for cause.

                    5.  Resignations: A member of the Academy Board may resign from office by submitting a written resignation or by notifying the
                         Director. The resignation is effective upon receipt by the Director, unless a later date is specified in the resignation. A written notice
                         of resignation is not required. If no such written notification is provided, then the Director shall confirm a resignation in writing. The
                         resignation shall be effective upon the date the Director sends confirmation to the resigning Academy Board member.

                    6.  Vacancy: An Academy Board position shall be considered vacant when an Academy Board member:

                                a. Resigns
                                b. Dies
                                c. Is removed from Office
                                d. Is convicted of a felony
                                e. Ceases to be qualified
                                f. Is incapacitated

                    7.  Filling a Vacancy: The Academy Board may nominate and the Director shall recommend or temporarily appoint persons to fill a
                         vacancy as outlined in the "Subsequent Appointments" and "Exigent Appointments" procedures in this resolution.

                    8.  Number of Academy Board Member Positions: The number of member positions of the Academy Board of Directors shall be
                         five (5), seven (7), or nine (9), as determined from time to time by the Academy Board.

                    9.  Quorum: In order to legally transact business the Academy Board shall have a quorum physically present at a duly called meeting
                         of the Academy Board. A "quorum" shall be defined as follows:

                                # of Academy Board positions                    # required for Quorum
                                        Five (5)                                                    Three (3)
                                        Seven (7)                                                  Four (4)
                                        Nine (9)                                                    Five (5)

                    10.  Manner of Acting: The Academy Board shall be considered to have "acted", when a duly called meeting of the Academy Board
                           has quorum present and the number of board members voting in favor of an action is as follows:

                                        # of Academy Board positions        # for Quorum        # required to act
                                        Five (5)                                            Three (3)                Three(3)
                                        Seven (7)                                          Four (4)                 Four (4)
                                        Nine (9)                                            Five (5)                  Five (5)

Section 3. Compensation. By resolution of the Academy Board, Directors may be paid their expenses, if any, of attendance at each meeting of the
                of the Academy Board, subject to the statutes regarding Contracts of Public Servants with Public Entities, Act No 317 of the Public Acts
                of 1968, being Sections 15.321 to15.330 of the Michigan Compiled Laws and the Standards of Conduct for Public Officers and
                Employees, Act No 196 of the Public Acts of 1973, being Sections 15.341 to 15.348 of the Michigan Compiled Laws, and the
                statute concerning Incompatible Public Offices, Act No. 566 of the Public Acts of 1978, being Sections 15.181 to 15.185 of the
                Michigan Compiled Laws.

ARTICLE V

MEETINGS

Section 1. Regular Meetings. The Academy Board shall hold a regular meeting during the month of June each year. The meeting shall be held at such
                time and place as the Academy Board of Directors shall from time to time determine. The Academy Board may also provide, by resolution,
                time and place, within the state of Michigan, for the holding of additional regular meetings. The Academy shall provide notice of all regular
                meetings as required by the Open Meetings Act.

Section 2. Special Meetings. Special meetings of the Academy Board may be called by or at the request of the President or any Academy Board
                Board Director. The person or persons authorized to call special meetings of the Academy Board may fix the place within the state of
                Michigan for holding any special meeting of the Academy Board called by them, and, if not other place is fixed, the place of meeting
                shall be the principal business office of the corporation in the state of Michigan. The corporation shall provide notice of all special
                meeting as required by the Open Meetings Act.

Section 3. Notice; Waiver. The Academy Board must comply with the notice provisions of the Open Meetings Act. In addition, notice of any
                meetings shall be given to each Director stating the time and place of the meeting delivered personally or mailed or sent by facsimile to
                each Director at the Director's business address. Any Director may waive notice of any meeting by written statement, or telecopy sent
                by the Director, signed before or after the holding of the meeting. The attendance of the Director at the meeting constitutes a waiver of
                notice of such meeting, except where a Director attends a meeting for the express purpose of objecting to the transaction of any business
                because the meeting is not lawfully called or convened.

Section 4. Open Meetings Act. All meetings of the Academy Board, shall at all times be in compliance with the Open Meetings Act.

Section 5. Presumption of Assent. A Director of the Academy Board who is present at a meeting of the Academy Board at which action on any
                corporate matter is taken shall be presumed to have assented to the action taken unless that Director's dissent shall be entered in the
                minutes of the meeting or unless that Director shall file a written dissent to such action with the person acting as the Secretary of the
                meeting before the adjournment thereof or shall forward such dissent by registered mail to the Secretary of the corporation immediately
                after the adjournment of the meeting. This right to dissent shall not apply to a Director who voted in favor of such action.

ARTICLE VI

COMMITTEES

Section 1.  Committees. The Academy Board, by resolution, may designate one or more committees, each committee to consist of one or more
                 Directors selected by the Academy Board. As provided in the resolution as initially adopted, and as thereafter supplemented or
                 amended by further resolution, the committees shall have such powers as delegated by the Academy Board, except (i) filling of
                 vacancies in the officers of the Academy Board or committees created pursuant to this Section; (ii) amending the Articles of
                 Incorporation or Bylaws; or (iii) any action the Academy Board cannot lawfully delegate under the Articles, Bylaws or Applicable Law.
                 All committee meetings shall at all times be in compliance with the Open Meetings Act. Each committee shall fix its own rules governing
                 the conduct of its activities and shall make such reports the Academy Board of its activities as the Academy Board may request.

ARTICLE VII

OFFICERS OF THE BOARD

Section 1.  Number. The officers of the Academy shall be a President, Vice-President, Secretary, Treasurer, and such Assistant officers as may be
                 selected by the Academy Board.

Section 2.  Election and Term of Office. The Academy Board shall elect the initial officers at its first duly noticed meeting. Thereafter, the Academy
                 Board shall elect the officers annually as terms expire at the annual meeting of the Academy Board. If the election of officers is not held
                 at that meeting, the election shall be held as soon thereafter as may be convenient. Each officer shall hold office while qualified or until the
                 officers resigns or is removed in the manner provided in Article IV, Section 2.

Section 3.  Removal. if the Grand Valley State University Board of Trustees determines that an Academy Board member's service in office is no
                 longer required, then the Board of Trustees may remove an Academy board member with or without cause and shall specify the date
                 when the Academy Board member's service ends. An Academy Board member may be removed from office by a two-thirds (2/3)
                 vote of the Academy's Board for cause.

Section 4.  Vacancies. A vacancy in any office shall be filled in accordance with Article IV, Section 2.

Section 5.  President. The President of the Academy shall be a member of the Academy Board. The President of the corporation shall preside at
                 all meetings of the Academy Board. If there is not a President, or if the President is absent, then the Vice-President shall preside. If the
                 Vice-President is absent, then a temporary chair, chosen by the members of the Academy Board attending the meeting shall preside. The
                 President shall be an ex-officio member of all standing committees and may be designated Chairperson of those committees by the
                 Academy Board. The President shall, in general, perform all duties incident to the office of President of the Board as may be prescribed
                 by the Board from time to time.

Section 6.  Vice President. The Vice-President of the Academy shall be a member of the Academy Board. In the absence of the President or in the
                 event of the President's death, or inability or refusal to act, the Vice-President shall perform the duties of President, and  when so acting,
                 shall have all the powers of and be subject to all the restrictions upon the President. The Vice-President shall perform such other duties as
                 from time to time may be assigned to the Vice-President by the President or by the Academy Board.

Section 7.  Secretary. The Secretary of the Academy shall be a member of the Academy Board. The Secretary shall: (a) keep the minutes of the
                 Academy Board meetings in one or more books provided for that purpose; (b) see that all notices, including those notices required under
                 the Open meetings Act, are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the
                 corporate records and of the seal of the corporation and see that the seal of the corporation is affixed to all authorized documents; (d)
                 keep a register of the post office address of each Director; and (e) perform all duties incident to the office of Secretary and other duties
                 assigned by the President or by the Academy Board.

Section 8.  Treasurer. The Treasurer of the Academy shall be a member of the Academy Board. The Treasurer shall: (a) have charge and custody of
                 and be responsible for all funds and securities of the corporation; (b) keep accurate books and records of corporate receipts and
                 disbursements; (c) deposit all money's and securities received by the corporation in such banks, trust companies or other depositories as
                 shall be selected by the Board; (d) complete all required corporate filings; (e) assure that the responsibilities of the fiscal agent of the
                 corporation are properly carried out; and (f) in general perform all of the duties incident to the office of Treasurer and such other duties
                 as from time to time may be assigned by the President or by the Academy Board.

Section 9.  Assistants and Acting Officers. The Assistants to the officers, if any, selected by the Academy Board, shall perform such duties and have
                 such authority as shall from time to time be delegated or assigned to them by the Secretary or Treasurer or by the Academy Board. The
                 Academy Directors shall have the power to appoint any person to perform the duties of an officer whenever for any reason it is impractical
                 for such officer to act personally. Such acting officer so appointed shall have the powers of and be subject to all the restrictions upon the
                 officer to whose office the acting officer is so appointed except as the Academy Board may by resolution otherwise determine.

Section 10. Salaries. Officers shall not receive a salary unless the salary has been specifically approved by the Academy Board, subject to the statute
                  concerning Incompatible Public Offices, Act No. 566 of the Public Acts of 1978, being sections 15.181 to 15.185 of the Michigan
                  Complied Laws. Officers of the corporation who are Directors of the corporation may not be compensated for their services. They may,
                  however, receive traveling and other expenses.

Section 11. Filling More Than One Office. Subject to the statute concerning Incompatible Public Offices, Act No. 566 of the Public Acts of 1978,
                  being Sections 15.181 to 15.185 of the Michigan Compiled Laws, any two offices of the corporation except those of President and
                  Vice-President may be held by the same person, but no officer shall execute, acknowledge or verify any instrument in more than one
                  capacity.

ARTICLE VIII

CONTRACTS, LOANS, CHECKS AND DEPOSITS;
SPECIAL CORPORATE ACTS

Section 1.  Contracts. The Academy Board may authorize any officer or officers, agent, or agents, to enter into any contract, to execute and deliver
                 any instrument, or to acknowledge any instrument required by law to be acknowledged in the name of and on behalf of the corporation.
                 Such authority may be general or confined to specific instances, but the appointment of any person other than an officer to acknowledge
                 an instrument required by law to authorizes the execution of a contract or of any other instrument in the name of and on behalf of the
                 corporation, without specifying the executing officers, the President or Vice-President, and the Secretary or Treasurer may execute the
                 same and may affix the corporate seal thereto. No contract entered into, by or on behalf of the Academy Board, shall in any way bind
                 the University or impose any liability on the University, its trustees, officers, employees or agents.

Section 2.  Loans. No loans shall be contracted on behalf of the corporation and no evidences of indebtedness shall be issued in its name unless
                 authorized by a resolution of the Academy Board. Such authority may be general or confined to specific instances. No loan or advance
                 to, or overdraft of funds by an officer or member of the Academy Board otherwise than in the ordinary and usual course of the business
                 or security, shall be made or permitted. No loan entered into, by or on behalf of the Academy Board, shall in any way be considered a
                 debt or obligation of Grand Valley State University or impose any liability on Grand Valley State University, its trustees, officers,
                 employees or agents.

Section 3.  Checks. Drafts. etc. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the
                  name of the corporation, shall be signed by such officer or officers, agent or agents, of the corporation and in such manner as shall from
                  time to time be determined by resolution of the Academy Board.

Section 4.  Deposits. All funds of the corporation not otherwise employed shall be deposited from time to time to the credit of the corporation in
                 such banks, trust companies or other depositories as the Academy Board may select, provided that such financial institution is eligible
                 to be a depository of surplus funds under Section 1221 of the Revised School Code, being Section 380.1221 of
                 Michigan Compiled Laws.

Section 5.  Voting of Securities Owned by this Corporation. Subject always to the specific directions of the Academy Board, any shares or other
                  securities issued by any other corporation and owned or controlled by this corporation may be voted at any meeting of security holders
                  of such other corporation by the President of this corporation or by proxy appointed by the President, or in the absence of the President
                  and the President's proxy, by the Secretary or Treasurer of this corporation or by proxy appointed by the Secretary or Treasurer. Such
                  proxy or consent in respect to any shares or other securities issued by any other corporation and owned by this corporation shall be
                  executed in the name of this corporation by the President, the Secretary or the Treasurer of this corporation without necessity of any
                  authorization by the Academy Board, affixation of corporate seal or countersignature or attestation by another officer. Any person or
                  persons designated in the manner above stated as the proxy or proxies of this corporation shall have full right, power and authority to
                  vote the shares or other securities issued by such other corporation and owned by this corporation the same as such shares or other
                  securities might be voted by this corporation.

Section 6.  Contract Between Corporation and Related Persons. As required by Applicable Law, any Director, officer of employee of the Academy
                  who enters into a contract with the Academy, that meets the definition of contract under the statute on Contracts of Public Servants
                  with Public Entities, Act No. 317 of the Public Acts of 1968, being sections 15.321 to 15.330 of the Michigan Compiled Laws, shall
                  comply with the public disclosure requirement set forth in Section 3 of the statute.

ARTICLE IX

INDEMNIFICATION

Each person who is or was a member of the Academy Board, or a trustee, director, officer or member of a committee of the Academy and each person who serves or has served at the request of the Academy as a trustee, director, officer, partner, employee or agent of any other corporation, partnership, join venture, trust or other enterprise, shall be indemnified by the corporation to the fullest extent permitted by the corporation laws of the State of Michigan as they may be in effect from time to time. The corporation may purchase and maintain insurance on behalf of any such person against any liability asserted against and incurred by such person in any such capacity or arising out of his status as such, whether or not the corporation would have power to indemnify such person against such liability under the preceding sentence. The corporation may, to the extent authorized from time to time by the Board, grant rights to indemnification to any employee or agent of the corporation to the fullest extent provided under the laws of the State of Michigan as they may be in effect from time to time.

ARTICLE X

FISCAL YEAR, BUDGET AND UNIFORM BUDGETING AND ACCOUNTING

Section 1.  Fiscal Year, Budget and Uniform Budgeting and Accounting. The fiscal year of the corporation shall begin on the first day of July
                  in each year. The Board of Directors, subject to the oversight responsibilities of the University Board, shall have exclusive control
                  of the budget. The Board shall prepare and publish an annual budget in accordance with the Uniform Budgeting and Accounting Act,
                  being Act 2 of the public laws of Michigan of 1968, as amended.

ARTICLE XI

SEAL

The Academy Board may provide a corporate seal, which shall be circular in form and shall have inscribed thereon the name of the corporation, the State of Michigan and the words "Corporate Seal" and "Public School Academy."

ARTICLE XII

AMENDMENTS

These Bylaws may be altered, amended or repealed and new Bylaws may be adopted by obtaining the affirmative vote of a majority of the Academy Board at any regular or special meeting of the Academy Board, if a notice setting forth the terms of the proposal have been given in accordance with the notice requirements for special meetings. Upon approval, the Academy Board shall forward the amendment to the University Charter Schools Office. The amendment shall be automatically incorporated into the Contract upon receipt of the amendment by the University Charter Schools Office.

CERTIFICATION

The Board certifies that these Bylaws were adopted as and for the Bylaws of a Michigan corporation in an open and public meeting, by the Hanley International Academy Board on the 19th day of May, 2005

(signed)
Secretary

SCHEDULE 4

FISCAL AGENT AGREEMENT

This Agreement is made as of April 22, 2005 and shall have an effective date of April 22, 2005, by and among Grand Valley State University Board of Trustees ("University Board"), an authorizing body as defined by the School Code of 1976 as amended, (the "Code"), the State of Michigan (the"State") and the Board of Directors of Hanley International Academy ("Academy"), a public school academy.

Preliminary Recitals

WHEREAS, the University Board and the Academy are entering into a Contract to Charter a Public School Academy dated April 22, 2005
(the "Contract"), and

WHEREAS, pursuant to the Code and the Contract, the University Board, as authorizing body, is the fiscal agent for the Academy and

WHEREAS, the University Board is required by law to forward any State School Aid Payments received from the State on behalf of the Academy
to the Academy.

NOW, THEREFORE, in consideration of the premises set forth below, the parties agree to the following:

ARTICLE I

DEFINITIONS AND INTERPRETATIONS

Section 1.01   Definitions. Unless otherwise provided, or unless the context requires otherwise, the following terms shall have the following definitions:

                      "Account" means an account established by the Academy for the receipt of State School Aid Payments at a bank, savings and loan
                      association, or credit union which is eligible to be a depository of surplus funds under Sections 5 or 6 of Act No. 105 of the Public
                      Acts of 1855, being Sections 21.145 and 21.146 of the Michigan Compiled Laws.

                      "Agreement" means this Fiscal Agent Agreement.

                      "Contract" means the contract to charter a public school academy, which the University Board and the Academy are entering into
                      on April 22, 2005.

                      "Fiscal Agent" means the University Board or an officer or employee of Grand Valley State University as designated by the
                      University Board.

                      "Other Funds" means any other public or private funds which the Academy receives and for which the University Board may act
                      as fiscal agent.

                      "State School Aid Payment" means any payment of money the Academy receives from the school aid fund established pursuant to
                      Article IX, Section 11 of the Michigan Constitution or under the School Aid Act of 1979, as amended.

                      "State" means the State of Michigan.

                      "State Treasurer" means the office responsible for issuing funds to public school academies for State School Aid Payments pursuant
                      to the School Aid Act of 1979, as amended.

ARTICLE II

FISCAL AGENT DUTIES

Section 2.01   Receipts of School Aid Funds. The University Board is the Fiscal Agent for the Academy. The Fiscal Agent will receive State School
                      Aid Payments from the State, as provided in Section 3.02.

Section 2.02   Transfer to Academy. The Fiscal Agent shall transfer all State School Aid Payments and all Other Funds received on behalf of the
                      Academy within three (3) business days of receipt or as otherwise required by the provisions of the State School Aid Act of 1979 or
                      applicable state board rules. The State School Aid Payments and all Other Funds shall be transferred into the Account designated by
                      a resolution of the Board of Directors of the Academy and by a method of transfer acceptable to the Fiscal Agent.

Section 2.03   Limitation of Duties. The Fiscal Agent has no responsibilities or duties to verify the Academy's pupil count, as defined in the State
                      School Aid Act of 1979, as amended, or to authorize to approve or to determine the accuracy of the State School Aid Payments
                      received on behalf of the Academy from the State Treasurer. The Fiscal Agent's duties under this Agreement are separated from
                      the University Board's duties outlined in the Contract executed by the University Board and the Academy and dated as of
                      April 22, 2005.

Section 2.04   Academy Board Requests for Direct Intercept of State School Aid Payments. If the Academy Board directs that a portion of its
                      State School Aid Payments be forwarded by the Fiscal Agent to a third party account for the payment of Academy debts and
                      liabilities, the Academy shall submit to the University Charter Schools Office; (i) a copy of the Academy Board's resolution            
                      authorizing the direct intercept of State School Aid Payments; and (ii) a copy of a State School Aid Payment Agreement and
                      Direction document that is in a form and manner acceptable to the Fiscal Agent.

ARTICLE III

STATE DUTIES

Section 3.01   Eligibility for State School Aid Payments. The State, through its Department of Education has sole responsibility for determining the
                      eligibility of the Academy to receive State School Aid Payments. The State, through its Department of Education, has sole
                      responsibility for determining the amount of State School Aid Payments, if any, the Academy shall be entitled to receive.

Section 3.02   Method of Payment. Each State School Aid Payment for the Academy will be made to the Fiscal Agent by the State Treasurer
                      by issuing a warrant and delivering the warrant to the Fiscal Agent or by electronic funds transfer into an account specified by the
                      Fiscal Agent. The State shall make State School Aid Payments at the times specified in the State School Aid Act of 1979, as amended

ARTICLE IV

ACADEMY DUTIES

Section 4.01   Compliance with Sate School Aid Act. In order to assure that funds are available for the education of pupils, an Academy shall comply
                      with all applicable provisions of the State School Aid of 1979, as amended.

Section 4.02   Expenditure of Funds. An Academy may expend funds from the State School Aid Fund for any purpose permitted by the State
                      School Aid Act of 1979 and may enter into contracts and agreements determined by the Academy as consistent with the purposed of
                      which the funds were appropriated.

Section 4.03   Mid-year Transfers. Funding for students transferring into or out of the Academy during the school year shall be in accordance with
                      the State School Aid Act of1979.

Section 4.04   Repayment of Overpayment. The Academy shall be directly responsible for reimbursing the State for any overpayments of State
                      School Aid Payments. At its option, the State may reduce subsequent State School Aid Payments by the amount of the overpayment
                      or may seek collection of the overpayment from the Academy.

ARTICLE V

RECORDS AND REPORTS

Section 5.01   Records. The Fiscal Agent shall keep books of record and account of all transactions relating to the receipts, disbursements,
                      allocations and application of the State School Aid Payments and Other Funds received, deposited or transferred for the benefit
                      of the Academy, and these books shall be available for inspection at reasonable hours and under reasonable conditions by the
                      Academy and the State.

Section 5.02   Reports. The Fiscal Agent shall prepare and send to the Academy within thirty (30) days of June 30, 2006, and annually thereafter
                      a written report dated as of June 30 summarizing all receipts, deposits and transfers made on behalf of or for the benefit of the
                      Academy during the period beginning on the latter of the date hereof or the date of the last such written report and ending on the date
                      of the report, including without limitation, State School Aid Payments received on behalf of the Academy from the State Treasurer
                      and any Other Funds for which the University Board acted as Fiscal Agent under this Agreement.

ARTICLE VI

CONCERNING THE FISCAL AGENT

Section 6.01   Representations. The Fiscal Agent represents that it has all necessary power and authority to enter into this Agreement and undertake
                      the obligations and responsibilities imposed upon it in this Agreement and that it will carry out all of its obligations under this Agreement.

Section 6.02   Limitation on Liability. The liability of the Fiscal Agent to transfer funds to the Academy shall be limited to the amount of State School
                      Aid Payments as are from time to time delivered by the State and the amount of Other Funds as delivered by the source of those funds.

                      The Fiscal Agent shall not be liable for any omission or action taken by it in good faith in any exercise of reasonable care and believed
                      by it to be within the discretion or power conferred upon it by this Agreement, nor shall the Fiscal Agent be responsible for the
                      consequences of any error of judgment; and the Fiscal Agent shall not be answerable except for its own action, omission or default
                      nor for any loss unless the same shall have been through its gross negligence or willful default.

                      The Fiscal Agent shall not be liable for any deficiency in the State School Aid Payments received from the State Treasurer to which
                      the Academy was properly entitled. The Fiscal Agent shall not be liable for any State School Aid overpayments by the State
                      Treasurer to the Academy for which the State subsequently seeks reimbursement.

ARTICLE VII

MISCELLANEOUS

Section 7.01   Notice. Any notice, authorization, request, or demand required or permitted to be given under this Agreement shall be in writing and
                      shall be deemed to have been duly given when mailed by regular first class mail and addressed as follows:

                                    To The Academy:                    Academy Board President
                                                                                   Hanley International Academy
                                                                                   3060 Hanley
                                                                                   Hamtramck, Michigan 48212

                                    To the Fiscal Agent:                 Charter Schools Office Director
                                                                                   Grand Valley State University Board of Trustees
                                                                                   1 Campus Drive
                                                                                   Allendale, Michigan 49401

                                    To the State:                            Michigan Department of Treasury
                                                                                   Lansing, MI 48922

                                    A United States Post Office registered or certified mail receipt or overnight courier receipt showing delivery of such
                                    documents shall be conclusive evidence of the date and the fact of delivery. Any party to this Agreement may change the
                                    address to which notices are to be delivered by giving to the other parties not less than then ten (10) days prior notices
                                    of the change.

Section 7.02   Termination of Responsibilities. Upon the taking of all the actions as described in this Agreement by the Fiscal Agent or upon the
                       expiration, termination, suspension or revocation of the Academy's Contract with the University Board, the Fiscal Agent shall have no
                       further obligations or responsibilities under this Agreement to the Academy or any other person or persons in connection with this
                       Agreement and this Agreement shall be discharged.

Section 7.03   Binding Agreement. This Agreement shall be binding upon the Fiscal Agent, the State, and the Academy and their respective
                      successors and legal representatives and shall insure solely to the benefit of the Academy, the Fiscal Agent and the State and their
                      respective successors and legal representatives.

Section 7.04   Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or
                      unenforceable in any respect, the invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this
                      Agreement shall be construed as if such invalid or illegal or unenforceable provisions had never been contained in this Agreement.

Section 7.05   Michigan Law Governs. This Agreement shall be governed exclusively by the provisions of this Agreement and by the applicable laws
                      of the State of Michigan.

Section 7.06   Amendment. This Agreement is made for the benefit of this Fiscal Agent, the Academy and the State and it may be altered or
                      amended in writing only if the University and the Academy have followed the procedures set forth in Section 1.9 of Article IX of the
                      Contract and only upon approval of the Academy and the University Board. However, if the Code is amended after the effective
                      date of this Agreement in a manner which alters the responsibilities or duties of the Fiscal Agent under the Code, the responsibilities
                      and duties of the Fiscal Agent shall be so altered automatically as of the effective date of such amendment to the Code.

Section 7.07   Term of Agreement. The term of this Agreement shall coincide with the term of the Contract.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective and duly authorized officers as of the
day and year indicated herein.

ACADEMY: HANLEY INTERNATIONAL ACADEMY

AUTHORIZING BODY: GRAND VALLEY STATE UNIVERSITY BOARD OF TRUSTEES

(signed)
Academy Board President

(signed)
Grand Valley State University Board Chair

SCHEDULE 5

MASTER CALENDAR OF REPORTING REQUIREMENTS

Public School Academy/School of Excellence
Master Calendar of Reporting Requirements
July 1, 2012 - June 30, 2013

DUE DATE                                                                                      REPORT DESCRIPTION                                            SUBMIT TO:
July 2                                                                        Board Adopted 2012-2013 School Calendar/School Day Schedule            CSO
July 2                                                                        Board Adopted Annual Operating Budget for the General Fund and            CSO
                                                                                 School Service Fund for 2012-2013
July 2                                                                        Copy of Notice of Public Hearing for Annual Operating Budget for               CSO
                                                                                 2012-2013
July 2                                                                        Copy of Parent Satisfaction Survey and Results from 2011-2012,                CSO
                                                                                 if applicable                                                                                                 CSO
July 5                                                                        Anti-Bullying Policy, in accordance with Matt's Safe School Law                  CSO
July 25                                                                      DS-4168 Report of Days and Clock Hours of Pupil Instruction for               CSO
                                                                                 2011-2012 academic year, if applicable (See MDE website,
                                                                                 www.michigan.gov/mde for MDE due date and form)
August 1                                                                   Annual Organizational Meeting Minutes for 2012-2013                                 CSO
August 1                                                                   Board Resolution appointing Chief Administrative Officer for 2012-13          CSO
August 1                                                                   Board Resolution appointing Freedom of Information Act Coordinator          CSO
                                                                                 for 2012-2013
August 1                                                                   Board Designated Legal Counsel for 2012-2013                                           CSO
August 1                                                                   Board adopted Annual Calendar of Regularly Scheduled Meetings                 CSO
                                                                                 for 2012-2013
August 31                                                                 4th Quarter Financial Statements - quarter ending 06/30                                 CSO
September 4                                                             Organizational Chart for 2012-2013                                                              CSO
September 4                                                             Board approved Student Handbook 2012-2013                                           CSO
September 4                                                             Board approved Employee Handbook 2012-2013                                        CSO
September 4                                                             Copy of School Improvement Plan covering 2012-2013 academic year         CSO
October 1                                                                 Completed PSA and ESP/MC Insurance Questionnaires. Required                CSO
                                                                                 forms available at www.gvsucso.org
October 1                                                                 Annual Nonprofit Corporation Information Update for 2012                           CSO
October 12                                                               Audited Financial Statements for fiscal year ending June 30, 2012 (See           CSO
                                                                                MDE Website, www.michigan.gov/mde for MDE due date
October 12                                                               Management Letter (comments and recommendations from independent         CSO
                                                                                 financial auditor) for fiscal year ending June 30, 2012, if issued. If a
                                                                                 management letter is not issued, a letter from the Academy stating a
                                                                                 management letter was not issued is required to be submitted
October 12                                                               Annual A-133 Single Audit for year ending June 30, 2012 is required if           CSO
                                                                                 over $500K in federal funds have been expended. If a single audit is not
                                                                                 necessary, a letter form the Academy stating as such is required to be
                                                                                 submitted.
October 12                                                               DS-4898 PSA Preliminary Pupil Membership Count for September                 CSO
                                                                                 2012 Enrollment and Attendance for 1st & 2nd Year PSA's only. (See
                                                                                 MDE website, www.michigan.gov/mde for MDE due date).
October 12                                                               Annual Education Report for the 2011-2012 academic year to be                    CSO
                                                                                submitted and presented at a public meeting.
October 29                                                               1t Quarter Financial Statements - quarter ending 09/30                                    CSO
December 3                                                              Academy's Technology Plan covering 2012-2013 or annual updates                CSO
                                                                                 thereto
January 7                                                                   Modifications to ISD's Plan for the Delivery of Special Education                    CSO
                                                                                 Services covering 2012-2013 signed by a representative of the Academy
January 31                                                                 2nd Quarter Financial Statements - quarter ending 12/31                                 CSO
January 31                                                                Michigan Highly Qualified Teacher Verification Report. Required                      CSO
                                                                                 Form Available at www.gvsucso.org
April 19                                                                     DS-4168-B District Report of Planned Number of Days and Clock                 CSO
                                                                                 Hours of Pupil Instruction for 2012-2013 (See MDE website
                                                                                 www.michigan.gov/mde for MDE due date)
April 26                                                                     3rd Quarter Financial Statements - quarter ending 03/31                                  CSO
May 14                                                                     Notice of Open Enrollment & Lottery Process or Open Enrollment &               CSO
                                                                                 Lottery Process Board Policy for 2013-2014
June 3                                                                        Certificate of Boiler Inspection covering years 2012-2013                               CSO
June 28                                                                      Board Approved Amended Budget for 2012-2013 fiscal year (or                    CSO
                                                                                  statement that budget has been reviewed and no amendment was needed
June 28                                                                      2012-2013 Log of emergency drills, including date, time and results,                CSO
                                                                                  Sample form available at www.gvsucso.org
June 28                                                                      Board adopted Letter of Engagement for year ending June 30, 2013                CSO
                                                                                  independent financial audit.
June 28                                                                      Food service license expiring 04/30/2014                                                        CSO

Ongoing Reporting Requirements
July 1, 2012 - June 30, 2032

The following documents do not have a set calendar date; however they require submission within a
certain number of days from board action or other occurrence.

DUE DATE                                                                                      REPORT DESCRIPTION                                            SUBMIT TO:
Date notice is                                                           Academy Board Meeting Record of Postings - cancellations, changes            CSO
posted                                                                     special meetings, emergency etc. Must include time and date of actual
                                                                               posting.
14 business days                                                      Draft Academy Board Meeting Minutes and Resolutions of regular,                CSO
after Board meeting                                                  special & emergency board meetings
14 business days                                                      Approved Academy Board Meeting Minutes and Resolutions of regular,        CSO
after Board meeting                                                  special & emergency board meetings
30 business days                                                      Board Adopted Annual Operating Budget for 2011-2012 including                CSO
after board approval                                                Salary/Compensation Transparency Reporting to be available on school        No submission
                                                                               website per the State School Aid Act as amended                                         needed
14 business days                                                      Oath of Office and written acceptance for each Board Member                       CSO
after Board approval                                               
10 business days                                                      Board adopted Amended Budget and General Appropriations                         CSO
after Board approval                                                Resolution
10 days of receipt                                                    Correspondence received from the Michigan Department/State Board              CSO
                                                                                of Education requiring a formal response
10 days of receipt                                                     Correspondence received from the Health Department requiring a                   CSO
                                                                                formal response
10 days of receipt                                                     Written notice of litigation or formal proceedings involving the Academy           CSO
30 days prior to                                                        Board proposed draft Educational Management Company Agreements            CSO
board execution                                                        or Amendments thereto
5 business days of                                                     Request and Responses to Freedom of Information Requests                            CSO
receipt

Original/Subsequent Board Policy Reporting Requirements
July 1, 2012 - June 30, 2013


The following documents do not have a set calendar date: however, they require an original
submission and subsequent submission if Board action is taken making amendments/changes

REPORT DESCRIPTION                                                                                                        SUBMIT TO:
Articles of Incorporation. Must have GVSU Board approval before modifying                            CSO
Board of Director Bylaws                                                                                                          CSO
Educational Service Provider Agreements/Amendments                                                              CSO
Academy's Educational Goals.                                                                                                    CSO
Office of Fire Safety (OFS-40) - original occupancy permit and permits for                                 CSO
renovations/additions, etc
Lease, Deed of Premises or Rental Agreement and subsequent amendments (includes                  CSO
modular units).
Curriculum including any additions/deletions                                                                                CSO
Asbestos Hazardous Emergency Response Act (AHERA) Management Plan. Visit                     CSO
www.michigan.gov/asbestos for Michigan's model management plan. A copy of the
"acceptance" letter sent by MIOSHA is also required.
Communicable Disease Curriculum (including minutes of board approval).                                     CSO
Job Descriptions for all employee groups                                                                                      CSO

REQUIRED BOARD POLICIES

REPORT DESCRIPTION                                                                                                          SUBMIT TO:
Board adopted Purchasing Policy (date of approval).                                                               CSO
Reference: MCL 380.1267, MCL 380.1274
Use of Medications Policy (date of approval).                                                                           CSO
Reference: MCL 380.1178, 380.1178a, 380.1179
Harassment of Staff or Applicant Policy (date of approval)                                                      CSO
Harassment of Students Policy (date of approval)
Reference: MCL 380.1300a
Search and Seizure Policy (date of approval)                                                                             CSO
Reference: MCL 380.1306
Emergency Removal, Suspension and Expulsion of Student Policy (date of approval)           CSO
Reference: MCL 380.1309, MCL 380.1312(8)&(9), MCL 37.1402
Parent/Guardian Review of Instructional Materials & Observation of Instructional              CSO
Activity Policy
Reference: MCL 380.1137
Board Member Reimbursement of Expenses Policy (date of approval)                                   CSO
Reference: MCL 380.1254, MCL 388.1764b
Equal Access for Non-School Sponsored Student Clubs and Activities Policy (date of           CSO
approval) Reference: MCL 380.1299
Electronic or Wireless Communication Devices Policy (date of approval)                               CSO
Reference: MCL 324.8316, 380.1256
Preparedness for Toxic Hazard and Asbestos Hazard Policy (date of approval)                      CSO
Reference: MCL 324.8316, 380.1256
Nondiscrimination and Access to Equal Educational Opportunity Policy (date of                     CSO
approval)
Including, but not limited to, Michigan Constitution, Article I, §26, Elliott-Larsen Civil
Rights Act, Title VI of the Civil Rights Act of 1964, Title IX of the Education Amendments
of 1972, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of
1975
Academy Deposit Policy (date of approval)                                                                                  CSO
PA 105 of 1855, being MCL 21.146, Section 11.10 of the Charter Contract
Parental Involvement Policy (date of approval)                                                                            CSO
Reference: MCL 380.1294
Wellness Policy (date of approval)                                                                                                 CSO
Reference: 42 USC §§ 1751, 1758, 1766, 42 USC § 1773

Calendar of Additional Reporting Requirements and Critical Dates
July 1, 2012 - June 30, 2013

The following reports Academies must submit to the local ISD, MDE, CEPI and other
organizations throughout the year.

DUE DATE                                                                                      REPORT DESCRIPTION                                            SUBMIT TO:
September 28                                                    Student Count Day for State Aide F.T.E.                                                        No submission
                                                                                                                                                                                                required
September 30                                                    SE-4096 Special Education Actual Cost Report (Contact ISD for due            ISD
                                                                          date)
October 3                                                          Eye Protection Certificate (#4527 Certification of Eye Protective                    CEPI
                                                                          Devices Electronic Grant System [MEGS] if applicable
October 3                                                          Certification of Constitutionally Protected Prayer                                             MDE
October 7                                                          SE-4094 Transportation Expenditure Report (Contact ISD for due date)        ISD
October 1-31 (as scheduled)                              Teacher Certification/Criminal Background Check/Unprofessional                 No submission needed
                                                                          Conduct. This is an onsite review scheduled and conducted by Quality
                                                                          Performance Resource Group. No submission required.
Oct/Nov                                                            School Infrastructure Database (SID); School-Wide Title I Participation          CEPI
Oct/Nov                                                            Deadline for MEIS/Single Record Student Database ("SRSD")                        CEPI
                                                                          electronic file (Contact the local ISD for due date)
November 1                                                       Deadline for Immunization Records Report - IP1000 (Contact Health             Local Health Dept
                                                                          Dept. for due date)
November 14                                                    Deadline for electronic submission to the Financial Information                         DEPI
                                                                          Database (FID, formerly known as the Form B). State aid will be
                                                                          withheld if the submission is not successful
Nov/Dec                                                            Special Education Count on MI-CIS. Special education data must be              ISD
                                                                          current and updated in the Michigan Compliance and Information
                                                                          System (MI-CIS). This information is used to determine funding for
                                                                          next year (Contact local ISD for due date).
December 1-31 (as scheduled)                          Teacher Certfication/Criminal Background Check/Unprofessional                    No submission required
                                                                         Conduct. This is an onsite review scheduled and conducted by Quality
                                                                         Performance Resource Group. No submission required
Nov/Dec                                                            Registry of Educational Personnel (REP) Submission                                      CEPI
December 30                                                     Municipal Finance Qualifying Statement, if applicable (online                           MI Dept of Treasury
                                                                          submission)
Feb 1                                                                 Deadline for Immunization Record Report - IP100 (Contact Health)               Local Health Dept
                                                                          Dept. for due date) A financial penalty of 5% of a school's state aid
                                                                          allocation can be assessed if the immunization rate is not at 90% or above
Feb 6                                                                Supplemental Student Count for State Aid F.T.E.                                            No submission required
March                                                                SF-4731-C Count of Membership Pupils eligible for free/reduced                  MDE
                                                                          breakfast, ,lunch or milk (official date TBD)
March                                                                MEIS/Single Record Student Database ("SRSD") electronic file                     ISD, CEPI
                                                                          (Contact local ISD for due date)
May 1-31 (as scheduled)                                    Teacher Certification/Criminal Background Check/Unprofessional                  No submission required.
                                                                          Conduct. This is an onsite review scheduled and conducted by Quality
                                                                          Performance Resource Group. No submission required.
June                                                                   MEIS/Single Record Student Database ("SRSD") electronic file                      ISD, CEPI
                                                                          (Contact local ISD for due date)
June                                                                   Registry of Educational Personnel (REP)                                                         CEPI
June                                                                    School Infrastructure Database (SID)                                                            CEPI

SCHEDULE 6

INFORMATION TO BE PROVIDED BY ACADEMY AND EDUCATIONAL
MANAGEMENT COMPANY

A.                The following described categories of information are specifically included within those to be made available to the public and the
                    University Charter School Office by the Academy in accordance with Section 11.17(a) of the Terms and Conditions:

                    1.     Contract;

                    2.     Copies of the executed Constitutional Oath of public office form for each serving Director;

                    3.     List of currently serving Directors with name, address, and term of office;

                    4.     Academy Board meeting calendar;

                    5.     Copy of public notice for all Academy Board meetings;

                    6.     Academy Board meeting agendas;

                    7.     Academy Board meeting minutes;

                    8.     Academy Board approved budget and amendments to budget;

                    9.     List of bills paid for amounts of $10,000.00 or more as submitted to the Academy Board;

                    10.   Quarterly financial reports submitted to the University Charter Schools Office;

                    11.   Curriculum documents and other educational materials submitted to the University Charter Schools Office;

                    12.   Copy of school improvement plan (if required);

                    13.   Copies of facility leases or deeds, mortgages, modular leases and/or deeds;

                    14.   Equipment leases;

                    15.   Proof of ownership for Academy owned vehicles and portable buildings;

                    16.   Academy Board approved management contract with Education Service Provider;

                    17.   Academy Board approved service contract(s);

                    18.   Office of Fire Safety certificate of occupancy for all Academy facilities;

                    19.   MDE letter of continuous use (if required);

                    20.   Local County Health Department food service permit (if required);

                    21.   Asbestos inspection report and asbestos management plan (if required);

                    22.   Boiler inspection certificate and lead based paint survey (if required);

                    23.   Phase 1 environmental report (if required);

                    24.   List of current Academy staff with their individual compensation as submitted to the Registry of Educational Personnel;

                    25.   Copies of administrator and teacher certificates or permits for all current administrative and teaching staff;

                    26.   Evidence of fingerprinting criminal background and record checks and unprofessional conduct check required by the Code for all
                            Academy teachers and administrators;

                    27.   Academy Board approved policies;

                    28.   Copy of the annual financial audit and any management letters issued to the Academy Board as part of the audit;

                    29.   Proof of insurance as required by the Contract;

                    30.   Any other information specifically required under Public Act 277 of 2011.

B.                The following information is specifically included within the types of information available to the Academy by the ESP (if any) in
                    accordance with section 11.17(b) of the Terms and Conditions:

                    1.     Any information needed by the Academy in order to comply with its obligations to disclose the information listed under (a)
                            above.

EDUCATIONAL SERVICE PROVIDER AGREEMENT

This Educational Service Provider Agreement is made and entered into as of the 29th day of March, 2012, by and between The Romine
Group, Inc, (hereafter referred to as "TRG") a Michigan corporation located at 7877 Stead Street, Utica, Michigan and Hanley
International Academy ("Academy") by and through its Board of Directors ("Academy Board") formed under Part 6A of the Revised
School Code (the "Code"), as amended, being Sections 380.501 to 380.507 of the Michigan Complied Laws located in Michigan.

The following is a recital of facts underlying this Agreement:

The Academy is a public school academy, organized under the Revised School Code (the "Code"). The Academy has been issued a contract
(the "Contract") from the Grand Valley State University Board of Trustees ("University Board") to organize and operate a public school
academy, with the University Board as the authorizing body. The Code permits a public school academy to contract with persons and entities for the operation and management of the public school academy.

TRG specializes in providing educational institutions, vocational schools, businesses, churches and other organizations with a variety of educational service and products, including management, curriculums, educational programs, teacher training and technology. TRG's products and services are designed to serve the  needs of a diverse student population.

The Academy and TRG desire to create an enduring educational partnership, whereby the Academy and TRG will work together to bring educational excellence and innovation to the Wayne County area, based on TRG's school design, comprehensive educational program, institutional principles and management methodologies.

In order to implement an innovative educational program at the school, the parties, desire to establish this arrangement for the management and operation of certain of the Academy's educational and administrative activities or functions.

Therefore, it is mutually agreed as follows:

ARTICLE I

TERM

This Agreement shall become effective upon execution and shall cover 7 academic year, with the entire term to end on June 30, 2019

ARTICLE II

CONTRACTUAL RELATIONSHIP

A.                Authority. The Academy represents that it is authorized by law to contract with a private entity and for that entity to provide educational
                    and management services. The Academy further represents that it has been issued a Contract by the University Board to organize and
                    operate a public school academy situated in Michigan. The Academy is therefore authorized by the University Board to supervise and
                    control such academy, and is vested with all powers within applicable law for carrying out the educational program contemplated in
                    this Agreement.

B.                Contract. Acting under and in the exercise of such authority, the Academy hereby contracts with TRG to the extent permitted by law, to
                    provide all functions relating to the provision of educational services and the management and operation of the Academy in accordance
                    with the terms of this Agreement and the Academy's authorizing documents. TRG shall comply with all terms and conditions of the Contract
                    to the extent TRG is performing services on behalf of the Academy. Section 11.13 of the Contract is hereby incorporated by reference.
                    To the extent that any provision of this agreement conflicts with the terms of the Contract, the Contract shall prevail.

C.                Status of the Parties. TRG is a for-profit corporation, and is not a division or a part of the Academy. The Academy is a body corporate
                    and governmental entity authorized by the Code, and is not a division or part of TRG. The relationship between TRG and the Academy
                    is based solely on the terms of this Agreement. No provision of this Agreement shall interfere with the Academy's Board under the Contract
                    and the Academy's duties under the Contract shall not be limited or rendered impossible by any action or inaction of TRG.

D.                Independent Contractor Status. The parties to this Agreement intend that the relationship between them created by this Agreement is that
                    of an independent contractor, and not employer-employee. No agent or employee of TRG shall be determined to be the agent or employee
                    of the Academy except as expressly acknowledged in writing by the Academy for the limited purpose of allowing them access to
                    educational records under the federal Family Educational Rights and Privacy Act. TRG will be solely responsible for its acts and the acts
                    of its agents, employees, and subcontractors. No provision of this Agreement shall predetermine the Academy Board's course of action
                    in choosing to assert or not assert governmental immunity.

E.                Bankruptcy Notice. TRG shall notify the Academy Board if any principal or officer of TRG, or TRG as a corporate entity (including any
                    related organization or organizations in which a principal or officer of the TRG served as a principal or officer), has filed for bankruptcy
                    protection in the last six (6) months or within any applicable preference period, whichever is longer.

F.                Compliance with Academy's Contract. The ESP agrees to perform its duties and responsibilities under this Agreement in a manner that is
                    consistent with the Academy's obligations under the Academy's Contract issued by Grand Valley State University Board of Trustees.
                    The provisions of the Academy's Contract shall supersede any competing or conflicting provisions contained in this Agreement.

G.                Compliance with Section 503c. On an annual basis, the ESP agrees to provide the Academy Board with the same information that a
                    school district is required to disclose under section 18(2) of the State School Aid Act of 1979, MCL 388.1618, for the most recent
                    fiscal year for which the information is available. Within thirty (30) days of receipt of this information, the Academy Board shall make the
                    information available on the Academy's website home page, in a form and manner prescribed by the Michigan Department of Education.
                    The defined terms in section 503c of the Code, MCL 380.503c, shall have the same meaning in this Agreement.

ARTICLE III

FUNCTIONS TO BE PERFORMED BY THE CONTRACTOR

In consideration of the management fee paid by the Academy, TRG shall perform the following:

A.                Responsibility. TRG shall be responsible, and accountable to the Academy, for the management, operation and performance of the Academy.

B.                Educational Program. The educational program and the program of instruction shall be designed by TRG  in cooperation with the Academy,
                    and may be adapted and modified from time to time with prior Board approval and in conjunction with the Contract amendment process
                    established by the Grand Valley State University Charter Schools Office ("CSO"), it being understood that an essential principle of a
                    successful, effective educational program is its flexibility, adaptability, and capacity to change in the interest of continuous improvement and
                    efficiency, and that the Academy and TRG are interested in results and not in inflexible prescriptions.

C.                Strategic Planning. TRG shall help design strategic plans for the continuing educational and financial benefit of the Academy.

D.                Public Relations. TRG shall design an ongoing public relations strategy for the development of beneficial and harmonious relationships with
                    other organizations and the community, for joint implementation by the Academy and its Board.

E.                Special Functions. The services TRG will probide the Academy include, but are not limited to the following:

                            Operational Public School Academy Services
                            1.     Financial
                                    *Develop salary schedules
                                    *Select benefit packages
                                    *Determine retirement options
                                    *Provide Payroll Services
                                    *Assist with yearly audit and locating C.P.A.
                                    *Pay approved invoices on a timely basis

                            2.     Educational Planning
                                    *Curriculum Expansion
                                    *Selection of assessments
                                    *School Improvement Plan
                                    *Accreditation North Central Association
                                    *Technology Plan

                            3.     Staff Development
                                    *Workshops and seminars
                                    *Professional Growth activities
                                    *Educator Evaluation and Observation

                            4.      Problem Solving
                                    *Personnel issues
                                    *Conflict resolution
                                    *Student/parent/teacher issues

                            5.      Compliance issues
                                    *Membership reports
                                    *Annual reports
                                    *Annual audits

                            6.      Equipment/Furniture

                            7.      Contracted Services (as needed)
                                    *Maintenance (building)
                                    *Cleaning supplies/equipment
                                    *Snow removal
                                    *Lawn service
                                    *Painting
                                    *Landscaping
                                    *Parking lot maintenance
                                    *Playground equipment
                                    *Athletic equipment

Assets provided, or caused to be provided, to the Academy by TRG with funds TRG has received from sources other than the Academy under
Article V shall remain the property of TRG or the providing entity unless agreed in writing to the contrary. All acquisitions made by TRG for the
Academy with funds TRG has received pursuant to Article V including, but not limited to, instructional materials, equipment, supplies, furniture,
computers and technology, shall be owned by and remain the property of the Academy. The Board shall retain the obligation, as owned by and
remain the property of the Academy. The Board shall retain the obligation as provided in Section 1274 of the Code, to adopt written policies governing
the procurement of supplies, materials, and equipment. In the event that TRG purchases supplies, materials, or equipment from third parties as agent
for or on behalf of the Academy, TRG shall comply with Section 1274 of the Code as if the Academy were making such purchases directly from a third
party. TRG certifies that there shall be no markup for costs for supplies, materials, or equipment procured by TRG on the Academy's behalf and that said
supplies, materials and/or equipment shall be inventoried in such a way that it can be clearly established which property belongs to the Academy.

F.                    Subcontracts. TRG reserves the right to subcontract any and all aspects of all other services it agrees to provide to the Academy, including
                        but not limited to transportation, food service, payroll and/or any computer services with the prior approval of the Academy Board. TRG
                        shall not subcontract the management, oversight, staffing, or operation of the teaching and instructional program, except as specifically
                        permitted herein or with the prior approval of the Academy Board.

G.                    Place of Performance. TRG reserves the right to perform functions other than instruction, such as purchasing, professional development
                        and administrative functions, off site, unless prohibited by state or local law.

H.                    Student Recruitment. TRG and the Academy shall be jointly responsible for the recruitment of students subject to agreement on general
                        recruitment and admission policies. Application by or for students shall be voluntary, and shall be in writing. Students shall be selected
                        in accordance with the procedures set forth in the Academy's Contract and in compliance with the Code and other applicable law.

I.                      Legal Requirements. TRG shall assist in providing educational programs that meet federal, state, and local laws and regulations, and the
                        regulations, and the requirements imposed under the Code and the Academy's Contract, unless such requirements are, or have been
                        waived.

J.                      Rules and Procedures. TRG shall recommend reasonable rules, regulations and procedures applicable to the Academy and is authorized and
                        directed to enforce such rules, regulations and procedures adopted by the Academy Board.

K.                     School Years and School Day. The school year and the school day shall be scheduled as required by law and the Academy's Contract.

L.                     Additional Grades and Student Population. TRG in connection with the Academy Administrator shall make the recommendation to the
                        Academy Board concerning limiting, increasing, or decreasing the number of grade s offered and the number of students served per grade
                        or in total, within the limits provided for by the Academy's Contract.

ARTICLE IV

OBLIGATIONS OF THE BOARD

The Academy shall exercise good faith in considering the recommendations of TRG and the Academy Administrator including, but not limited to their recommendations concerning policies, rules, regulations, procedures, curriculum, budgets, fund raising, public relations and school entrepreneurial affairs. TRG does understand all of these decisions remain the responsibility of the Academy Board and may not be delegated directly to TRG.

ARTICLE V

FINANCIAL ARRANGEMENTS

A.                        Compensation for Services. From July 1, 2012 through June 30, ____, the Academy shall pay TRG a capiation fee of an amount
                            equal to ten (10%) percent, based upon all of the funds received by the Academy that the State of Michigan determines the Academy
                            is entitled to receive pursuant to the State School Aid Act of 1979, as amended, for the particular students enrolled in the Academy
                            ("SSA") and the 31A - At Risk, Title I, IIA, IID and V program funds. The SSA may change according to overall changes in the "
                            student allocations by the State of Michigan. Such fee shall not be less than $400,000 nor exceed $800,000 in any one academic
                            year of the Academy. The SSA may change according to overall changes in the student allocations by the State of Michigan.

B.                        No Related Parties or Common Control. TRG will not have any role or relationship with the Academy that, in effect, substantially
                            limits the Academy's ability to exercise its rights, including cancellation rights, under this Agreements. The Board may not include any
                            director, officer or employee of a management company that contracts with the Academy. In furtherance of such restriction, it is
                            agreed between the Academy and TRG that none of the voting power of the governing body of the Academy will be vested in
                            TRG or its directors, members, managers, officers, shareholders, and employees, and non of the voting power of the governing
                            body of TRG will be vested in the Academy or its directors, members, managers, officers, shareholders, and employees. The
                            Academy and TRG will not employ the same individuals. Further, the Academy and TRG will not be members of the same
                            controlled group, as defined in Section 1.150-1 (f) of the regulations under the Internal Revenue Code of 1986, as amended, or
                            related persons, as defined in Section 144(a)(3) of the Internal Revenue Code of 1986, as amended. No TRG employee shall be
                            designated as the Chief Administrative Officer of the Academy, although such employee may be a designee of the Chief
                            Administrative Officer for certain purposes enumerated by Board action.

C.                        Payment of Costs. In addition to the fee described in this Section, the Academy shall reimburse TRG for all costs incurred and paid
                            by TRG in providing the Education Program and other goods and services, pursuant to Articles III, V, VI, and XI of this
                            Agreement, at the Academy provided such costs are consistent with the Academy budget approved by the Academy Board. Such costs
                            include, but are not limited to, advertising, typing, printing, duplicating, postage, application fees, curriculum materials, textbooks,
                            library books, furniture and equipment, computers, supplies, salaries and related expenses of TRG employees assigned to the Academy       
                            to provide goods and services to the Academy, building payments, maintenance, capital improvements and subcontractor fees.
                            In paying costs on behalf of the Academy, TRG shall not charge an added fee. The Academy shall not reimburse TRG for any costs
                            incurred or paid by TRG as a result of services provided or actions taken pursuant to Articles I, II, IV, VII, VIII (except as
                            otherwise specifically indicated), IX, X, XII, XIII and XIV of this Agreement. The Academy Board may pay or reimburse TRG
                            for approved fees or expenses upon properly presented documentation and approval by the Academy Board, or the Academy
                            Board may advance funds to TRG for the fees or expenses associated with the Academy's operation provided that documentation
                            for the fees and expenses are provided for Academy Board ratification.

D.                        Time and Priority of Payments. The fee due to TRG shall be calculated for each school year at the same time as the State of
                            Michigan calculates the SSA, and adjustments to such calculation shall occur at the same time as the State of Michigan makes
                            adjustments to the SSA. TRG shall receive its fee as calculated pursuant to the preceding sentence in eleven (11) installments
                            beginning in October of each school year and ending in August of each school year. Such installment amounts shall be due
                            and payable within five (5) days of receipt by the Academy of its monthly SSA. Payments due and owing to TRG shall be made
                            by the Academy to TRG on or before the last day of each month.

E.                        Other Revenue Sources. In order to supplement and enhance the school aid payments received from the State of Michigan, and
                            improve the quality of education, the Academy and TRG shall endeavor to obtain revenue from other sources. In this regard:
                                    1.    The Academy and/or TRG shall solicit and receive grants and donations consistent with the mission of the Academy

                                    2.    Academy and/or TRG may apply for the receive grant money, in the name of the Academy subject to the prior approval
                                           approval of the Board.

                                    3.    To the extent permitted under the Code and approved by the Academy Board, TRG may charge fees to student for
                                           for extra services such as summer and after school programs, athletics, etc., and charge non-Academy students who
                                           participate in such programs. TRG and the Academy will split all revenue collected, in a proportion agreed upon by
                                           the parties in advance of TRG conducting such programs, less expenses to the Academy caused by such programs,
                                           if not prohibited by law.

F.                    Other Institutions. The Academy acknowledges that TRG may enter into similar management agreements with other public or
                        private educational school or institutions ("Institutions"). TRG shall maintain separate accounts for reimbursable expenses
                        incurred on behalf of the Academy and other Institutions, and only charge the Academy for expenses incurred on behalf of the
                        Academy. If TRG incurs authorized reimbursable expenses on behalf of Academy and other institutions which are incapable
                        of precise allocation between the Academy and such Institutions, to the extent permitted under applicable law, the TRG shall
                        allocate such expenses among all such Institutions, and the Academy on a pro-rata basis based upon the number of students
                        enrolled at the Academy and the Institutions, or upon such other equitable basis as is acceptable to the parties. All grants or
                        donations received by the Academy or by TRG for the specific benefit of the Academy, shall be used solely for the Academy.
                        Marketing and development costs paid by or charged to the Academy shall be limited to those costs specific to the Academy
                        program, and shall not include any costs for the marketing and development of TRG.

G.                    Reporting. TRG shall provide the Academy with:

                                    1.    All information the Academy's auditors reasonably request.

                                    2.    Reports on Academy operations, finances, and student performance, upon request of the Academy, the University
                                           Board or the State of Michigan.

                                    3.    Level of compensation and fridge benefits of employees assigned to the Academy.

                                    4.    Other information on a periodic basis to enable the Academy to monitor TRG's educational performance and the
                                           efficiency of its operations of the Academy.

H.                    Access to Records. TRG shall keep accurate records pertaining to its operation of the Academy, together with all Academy
                        records prepared by or in the possession of the TRG, and, unless required by law to be retained for a longer period, retain all
                        of said records for a period of five (5) years from the close of the fiscal year to which such books, accounts and records relate.
                        All financial, educational and student records pertaining to the Academy are Academy property. Such records are subject to the
                        Michigan Freedom of Information Act and shall be physically stored at the Academy's physical facilities or directly accessible at the
                        Academy facility and shall be maintained in accordance with the policies of the Michigan Department of Education. All records
                        pertaining to teacher and administrator certification, as well as a copy of the employee handbook shall be maintained physically on
                        site or directly assessable at the Academy facility. TRG and the Academy shall maintain the proper confidentiality of personnel, student
                        and other records as required by law. TRG shall make all information available to the Academy as deemed necessary by the Academy
                        Board to fully satisfy its obligation under the Contract and at least the information that a school district is required to disclose under
                        MCLA 388.1618 for the most recent fiscal year for which information is available.

I.                      Review of Budget. The Academy Board shall be responsible for reviewing, revising, and approving the annual budget of the Academy.

J.                      Annual Audit. The Academy Board shall select, retain and pay for an annual financial audit in accordance with the Contract and
                        applicable state law. TRG shall cooperate with said auditor and will make sure that all Academy's financial records and TRG records
                        related to the Academy will be made available to the independent auditor.

K.                    Payment of Academy Funds. TRG shall not be a signatory on any Academy Board account. All interest earned on Academy depository
                        accounts shall accrue to the Academy.

PERSONNEL & TRAINING

A.                    Personnel Responsibility. Subject to the Contract, and Academy Board policies. TRG shall, in cooperation with the
                        Academy Board staffing levels, and select, evaluate, assign, discipline and transfer personnel, consistent with state and
                        federal law, and consistent with the parameters adopted and included within the Contract. The Academy and TRG agree
                        that TRG has all the rights, discretion and authority required by law to constitute an "employer" as defined in 29 U.S.C
                        §152(2) of the National Labor Relations Act and is subject to the jurisdiction of the National Labor Relations Board
                        The Academy Board reserves the right to have TRG personnel placed elsewhere by TRG if the Academy is dissatisfied
                       
 with their performance. TRG shall not have contracts with staff assigned to the Academy (including by way of example
                        and not limitation, teachers, administrators, counselors and the like) which contain non-compete agreements of any nature.

B.                    Principal. Because the accountability of TRG to the Academy is an essential foundation of this partnership, and because the
                        responsibility of a principal ("Principal") is critical to its success, the Principal will be an employee of TRG and TRG will have
                        the authority, consistent with state law, to select and supervise the Principal and to hold him or her accountable for the
                        success of the Academy. The employment contract with the Principal, and the duties and compensation of the Principal shall
                        be determined by TRG with the consent of the Academy Board. The Principal and TRG, in turn, will have similar authority
                        to select and hold accountable the teachers in the Academy.

C.                    Teachers. Subject to the Contract and Academy Board policies, and from time to time thereafter, TRG shall recommend to the
                        Academy Board the number of teachers, and the applicable grade levels and subjects, required for the operation of the Academy.
                        Thereafter, the Academy Board shall determine the number and applicable grade levels and subjects of the Academy. TRG shall
                        provide the Academy with such teachers, qualified in the grade levels and subjects required, as are required by the Academy
                        Board and the Contract. The curriculum taught by such teachers shall be the curriculum prescribed by the Academy and set forth
                        by the Contract. Such teachers may, in the discretion of TRG, work at the Academy on a full or part time basis, provided that if
                        teachers work at the Academy on a part time basis, such teachers' salaries and benefits shall be pr-rated in the Academy's budget.
                        If assigned to the Academy on a part time basis, such teachers may also work at other schools managed or operated by TRG.
                        Each teacher assigned or retained to the Academy shall hold a valid teaching certificate issued by the State Board of Education
                        under the Code and shall have undergone a criminal background and record check and unprofessional conduct check, as required
                        under the Code for teachers who are employees of the Academy.

D.                    Support Staff. TRG shall recommend, and the Academy Board shall determine, the number and functions of support staff required
                        for the operation of the Academy. The parties anticipate that such support staff may include clerical staff, administrative assistants
                        to the Principal, a bookkeeping staff, maintenance personnel, and the like.

E.                    Employer of Personnel. Except as specified in this Agreement, all teaching and instructional personnel performing functions on behalf
                       of the Academy shall be employees of TRG. Compensation of all employees of TRG shall be paid by TRG. For purposes of this
                       Agreement,, "Compensation" shall include salary, fringe benefits, and state and federal tax withholdings. TRG shall be responsible for
                       paying social security, unemployment, and any other taxes required bylaw to be paid on behalf of its employees. Unless required by
                       applicable statute, court or administrative decision, or Attorney General's opinion, TRG shall not make payments to the Michigan
                       Public School Employees' Retirement System or any other public retirement system on behalf of its employees. TRG shall be responsible
                       for conducting criminal background checks and unprofessional conduct checks on its employees, as if it were a public school academy
                       under the Code of evidence of the same shall be stored, in physical form, at the Academy or directly accessible at the Academy facility.
                       Teachers employed by TRG shall not be considered teachers for purposes of continuing tenure under MCLA §38.71 et seq. 

F.                    Training. TRG shall provide training in its methods, curriculum, program, and technology to all teaching personnel on the regular and
                       continuous basis. Such methodology shall at a minimum utilize TRG's teaching staff to utilize their own professionals abilities to provide
                       in-service training to each other. Instructional personnel will receive at least the minimum number of professional development hours
                       as required under the Michigan Code. Non-instructional personnel shall receive such training as TRG determines as reasonable and
                       necessary under the circumstances. 

ARTICLE VII

ADDITIONAL PROGRAMS

A.                    Additional Programs. The services provided by TRG to the Academy under this Agreement consist of the Education Program during
                        the school year and school day as set forth in the Contract. With prior approval of the Academy Board, TRG may provide additional
                        including, but not limited to, adult and community education, summer school, and other special programs. In such cases where TRG
                        is responsible for the cost of providing such additional programs, TRG and the Academy will split, in a proportion agreed upon by the
                        parties in advance of TRG conducting such programs, with the Academy all revenues collected, less expenses to the Academy caused
                        by such programs.

B.                     Food Service and Transportation. TRG will not initially provide transportation services to students at the Academy. If approved by the
                        Academy Board, the student will be provided a catered lunch program under the normal school lunch program.

ARTICLE VIII

TERMINATION OF AGREEMENT

A.                    Termination By TRG. TRG may terminate the Agreement with cause prior to the end of the term specified in Article I in the event the
                        the Academy fails to remedy a material breach with sixty (60) days after notice from TRG. A material breach may include, but is
                        not limited to, failure to make payments to TRG as required by this Agreement, or unreasonable failure to adhere to the personnel,
                        curriculum, program, or similar material recommendations of TRG.

B.                    Termination by the Academy. The Academy may terminate this Agreement with cause prior to the end of the term in the event that TRG
                        should fail to remedy a material breach within (60) days after the notice from the Academy. Material breach may include, but is not
                        limited to, violation of this Agreement, violation of Academy's Contract with the University Board, failure to account for its
                        expenditures or to pay operating costs (providing funds are available to do so), or unreasonable failure to meet performance standards.

C.                    Change in Law. In any federal, state, or local law or regulation, or court decision has a material adverse impact on the ability of either
                        party to carry out its obligations under this Agreement, then either party, upon written notice, may request renegotiating of the
                        Agreement; and if the parties are unable or unwilling to renegotiate the terms within thirty (30) days after the notice, the party
                        requiring the renegotiation may terminate this Agreement on thirty (30) days further written notice.

D.                    Effective Date of Termination. In the event that this Agreement is terminated by either party prior to the end of the term specified in
                        Article I, absent unusual and compelling circumstances, the termination will become effective at the end of the current fiscal year
                        following the notice of termination.

E.                    Expiration. Upon expiration of this Agreement at the completion of the Contract term and where there is no renewal, or upon the
                       termination of this agreement, whether with or without cause, TRG shall have the right to (a) reclaim any usable property or
                       or equipment (e.g. copy machines, personal computers) it provided to the Academy at TRG's expense and not paid for by the
                       Academy, or (b) to make payment for any such property, at the sole option of the Academy. If the Academy chooses to purchase
                       such property, the purchase price shall be either fair market value of such property determined as of the effective date of the termination
                       or expiration of this Agreement or the depreciated cost of such property, whichever is less. Fixtures and building alterations shall become
                       the property of the building owner.

F.                    Transition and Termination. Upon termination, TRG shall work for a period up to ninety (90) days if deemed necessary by the
                        Academy to transition to a new Educational Service Provider. The fee shall be in accordance with the compensation stated
                        herein. However, upon termination, TRG shall, without charge (i) close the cooks on the then-current fiscal quarter; (ii) organize and
                        prepare student records for transition to the new ESP; and (iv) provide for the orderly transition of employee compensation and
                        benefits to the new ESP without disruption to staffing.

G.                    No Penalty Early Termination. If the University determines to exercise its prerogative under MCLA 380.507(7) and or the
                        Contract to reconstitute the Academy by requiring the termination or amendment to the Agreement there shall be no cost or penalty
                        to the Academy.

H.                    Revocation or Termination of Contract. If the Academy's Contract issued by the Grand Valley State University Board of Trustees
                        is revoked or terminated, this Agreement shall automatically terminate on the same date as the Academy's Contract is revoked or
                        termination without further action of the parties.

ARTICLE IX

PROPRIETARY INFORMATION

A.                    Proprietary Information. The Academy owns all proprietary rights to curriculum or education materials that: (i) are both directly
                        developed and paid for by the Academy; or (ii) were developed by TRG at the direction of the Academy Board with Academy
                        funds dedicated to the purpose of developing such curriculum or materials. TRG owns all proprietary rights to curriculum and
                        educational materials previously developed or copyrighted by TRG, curriculum and educational materials developed by TRG not
                        using funds from the Academy, and curriculum and educational materials not dedicated to the specific purpose of developing
                        Academy, curriculum or educational materials. TRG and the Academy shall each have the sole and exclusive right to
                        license materials for which they own proprietary rights for use by other school districts, public schools and customers or to modify
                        and/or sell material to other schools and customers. The Academy and TRG each shall use reasonable efforts to ensure that its
                        personnel and agents refrain from disclosing, publishing, copying, transmitting, modifying, altering or utilizing proprietary information
                        owned by the other party. TRG's educational materials and teaching techniques used by the Academy are subject to disclosure under
                        the Revised School Code and the Freedom of Information Act.

B.                    Required Disclosure. The Academy Administrator shall be permitted to report any new teaching techniques or methods of revisions to
                        known techniques or methods to the Academy Board and to the State Board of Education, which techniques or methods may thereafter
                        be made available to the public, as provided in Sections 505(3) of the Code, notwithstanding anything contained in this Article IX
                        to the contrary.

ARTICLE X

INDEMNIFICATION

A.                    Indemnification. To the extent permitted by law, the Academy shall indemnify and save and hold TRG and all of its employees, officers,
                        directors, subcontractors, and agents (collectively "TRG Employees") harmless against any all claims, demands, suits, or other
                        forms of liability that may arise out of, or by reason of, any action taken or not taken by TRG or any of its TRG employees in the event
                        of any claim that this Agreement or any part thereof is in violation of law; any noncompliance by the Academy with any agreements,
                        covenants, warranties, or undertakings of the Academy contained in or made pursuant to this Agreement; and any misrepresentation
                        or breach of the representations and warranties of the Board contained in or made pursuant to this Agreement. In addition the Academy shall
                        reimburse TRG for any and all legal expenses and costs associated with the defense of any such claim, demand, or suit.
                        TRG shall indemnify and save and hold the Academy and all of its employees, officers, directors, subcontractors, and agents (collectively
                        "Academy Employees") harmless against any and all claims, demands, suits, or other forms of liability that may arise out of, or by reason of
                        any action taken or not taken by the Academy or any of its Academy Employees in the event of any claim that this Agreement or any part
                        thereof is in violation of law; any noncompliance by TRG with any agreements, covenants, warranties, or undertakings of TRG
                        contained in or made pursuant to this Agreement; and any misrepresentation or breach of the representations and warranties of the
                        Board contained in or made pursuant to this Agreement. In addition, TRG shall reimburse the Academy for any and all legal expenses
                        and costs associated with the defense of any such claim, demand, or suit.

B.                    Indemnification of Grand Valley State University. The parties acknowledge and agree that the Grand Valley State University Board
                       of Control, Grand Valley State University and its members, officers, employees, agents or representatives are deemed to be third
                       party beneficiaries for purposes of this Agreement. As third party beneficiaries, the parties hereby promise to the extent permitted
                       by law to indemnify and hold harmless Grand Valley University Board of Control, Grand Valley State University and its members,
                       officers, employees, agents or representatives from all claims, demands, or liability, including attorney fees, and related expenses,
                       on account of injury, loss or damage, including, without limitation, claims arising from bodily injury, personal injury, sickness,
                       disease, death, property loss or damage or any other losses of any kind whatsoever and not caused by the sole negligence of
                       Grand Valley State University, which arise out of or are in any manner connected with Grand Valley State University Board's approval
                       of the School of Excellence application, the University Board's consideration of or issuance of a Contract, the Academy's
                       preparation for and operation of a public school, or which are incurred as a result of the reliance by Grand Valley State University
                       and its Board of Control members, officers, employees, agents or representatives upon information supplied by the Academy of the
                       Educational Management Organization, or which arise out of the failure of the Academy to perform its obligations under the Contract
                       issued to the Academy by Grand Valley State University Board of Control. The parties expressly acknowledge and agree that
                       Grand Valley State University and its Board of Trustee members, officers, employees, agents or representatives may commence
                       legal action against either party to enforce its rights as set forth in this Agreement.

ARTICLE XI

INSURANCE

TRG shall secure and maintain insurance coverage as required by Michigan University Self Insurance Corporation (MUSIC) and the Contract. The Academy shall maintain insurance coverages in the amounts required by the Contract. The Academy shall also maintain such insurance as shall be necessary to indemnify TRG as provided in this Agreement. Each party shall, upon request, present evidence to the other that it maintains the requisite insurance in compliance with the provisions of this paragraph. TRG shall comply with any information or reporting requirements applicable to the Academy under the Academy's policy with its insurer(s), to the extent practicable. TRG insurance shall include coverage for sexual molestation or abuse, will list the Academy and the University as an additional named insured and shall not be changed, revoked or modified absent thirty (30) days notice to the University President as an additional insured name. In the event the University President modifies the level, type, scope or other aspects of such coverage, then TRG shall undertake like and similar modifications within thirty (30) days of being notified of such change.

ARTICLE XII

WARRANTIES AND REPRESENTATIONS

The Academy and TRG each represent that it has the authority under law to execute, deliver, and perform this Agreement, and to incur the obligations provided for under this Agreement, that its actions have been duly and validly authorized, and that it will take all steps reasonably required to implement this Agreement. The Academy and TRG mutually warrant to the other that there are no pending actions, claims, suits, or proceedings, to its knowledge, threatened or reasonably anticipated against or affecting it, which if adversely determined, would have a material adverse affect on its ability to perform its obligations under this Agreement.

ARTICLE XIII

MISCELLANEOUS

A.                    Sole Agreement. This Agreement supersedes and replaces any and all prior agreements and understanding between the Academy and TRG.

B.                    Force Majeure. Neither party shall be liable if the performance of any part of all of this contract is prevented, delayed, hindered, or
                        otherwise made impracticable, or impossible by reason of any strike, flood, riot, fire, explosion, war, act of God, sabotage, accident,
                        or any other casualty, or cause beyond either part's control, and which cannot be overcome by reasonable diligence and without
                        unusual expense.

C.                    Notices. All notices, demands, requests, and consents under this Agreement shall be in writing, shall be delivered to each party, and
                        shall be delivered to each party, and shall be effective when received by the parties or mailed to the parties at their respective addresses
                        set forth below, or at such other address as may be furnishes by a part to the other party:

With a copy to:

Hanley International Academy                        George Butler
2400 Denton St                                              Dickinson Wright PLLC
Hamtramck, MI 48212                                   500 Woodward Ave Ste 4000
Attn. President, Board of Directors                  Detroit, MI 48226

The Romine Group, Inc                                  Davis Burket Savage Brennan
Corporate Headquarters                                10 N Main Street Ste 401
7877 Stead Street                                          Mt. Clemens, MI 48043
Attn. Paul C. Romine                                     Attn. John L. Burket

D.                    Severability. The invalidity of any of the covenants, phases, or clauses in this Agreement shall not affect the remaining portions of
                        this Agreement, and this Agreement shall be construed as if such invalid covenant, phase, or clause had not been contained in
                        this Agreement.

E.                    Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of the parties and their respective successors
                       and assigns.

F.                    Entire Agreement. This Agreement is the entire agreement between the parties relating to the services provided, and the compensation
                       for such services. The Academy Board and TR may not substantially amend this Agreement without notification to the University
                       President. Said amendment shall not be contrary to this Section and it must be accompanied by a Legal Opinion. The Academy is
                       responsible for submitting any and all amendments to the University President with ten (10) days after such amendment.

G.                   Non-Waiver. No failure of either party in exercising any right, power, or privilege under this Agreement shall affect such right, power,
                       or privileges, nor shall any single or partial exercise thereof preclude any further exercise thereof or the exercise of any other right,
                       power, or privilege. The rights and remedies of the parties under this Agreement are cumulative and not exclusive of any rights or
                       remedies which any of them may otherwise have.                    

H.                   Assignment. This Agreement shall not be assigned by either party without the prior written consent of the other party.

I.                    Survival of Termination. All representations, warranties, and indemnities made herein shall survive termination of this Agreement.

J.                    Governing Law. This Agreement shall be governed by and enforced in accordance with the law of the State of Michigan.

The parties have executed this Agreement as of the day and year first above written.

THE ROMINE GROUP, INC                                            HANLEY INTERNATIONAL ACADEMY

(signed)                                                                                (signed)
William F. Kneer III                                                             Jeffrey M Leib
Vice President                                                                      President
5/24/12                                                                                5/24/12

SCHEDULE 7

ACADEMY SPECIFIC INFORMATION & EDUCATIONAL PROGRAM

SCHEDULE 7-1

EDUCATIONAL GOALS

Standards for Schools Serving from Kingergarten to Eigth Grade:

Standard #1: On the average of all MEAP tests administered or successor state test administered, the public school academy will meet or exceed the performance of its select peer district. A select peer district is the school district Grand Valley State University identifies as a reasonable comparison district for the public school academy.

Standard #2: On the average of all MEAP tests or successor state test administered, the public school academy will meet or exceed the performance of its compositional peer district. The comparison scores for the compositional peer district are populated by the weighted total of MEAP scores from those districts in which the PSA's students physically reside.

Standard #3: The public school academy will not average more than one-half a standard deviation below GVSU's MEAP or successor state test/Free-Reduced Lunch regression model for all grades and subjects included in the model.

Standard #4: The Fall to Spring growth rate of each grade and subject for all groups of pupils for which the administered nationally norm-referenced test is designed will fall at the fiftieth percentile or higher.

Date: 5/24/12                            (signed) Board President/Vice President

Secretary's Certification:

I certify that the foregoing resolution was duly adopted by the Hanley Board of Directors at a properly noticed open meeting held on the 24th day of May, 2012 at which a quorum was present.

(signed) Treasurer signing for Board Secretary

SCHEDULE 7-2

CURRICULUM

(please see enclosed CD)

 

SCHEDULE 7-3

STAFF RESPONSIBILITIES

Except as otherwise provided by law, the Academy shall use certificated teacher according to state board rule. The Academy may use noncertified individuals to teach as follows:

                    (a)    A classroom teacher in any grade a faculty member who is employed full-time by the state public university and who has been granted
                            institutional tenure, or has been designated as being on tenure track, by the state public university, and

                    (b)    In any other situation in which a school district is permitted under this act to use noncertificated teachers.

                    All administrators and chief business officials shall be certified and complete continuing education requirements as describes in MCL 380.1246

Job Title:            Administrator/Principal (Full-time)
Contract:            12 Months
Reports To:        The Romine Group, Inc ("TRG")
Employed By:     TRG

Job Summary:
The Administrator/Principal is responsible for providing instructional, operational and administrative leadership. He/she will organize, supervise and
evaluate development of curriculum, school programs, staff and student achievement, while overseeing the day-to-day operations of the School.

Performance Duties:
- Communicate the vision, philosophy and mission of Hanley International Academy to staff, students, parents, community and the media
- Develop a plan for achieving the School's vision and establish annual objectives and strategies.
- Administer fiscal planning activities.
- Develop and manage the School budge.
- Represent the School at Board of Directors' meetings and provide educational leadership.
- Represent the School at formal functions, community and civic affairs.
- Implement State of Michigan education codes, rules and regulations as given by the State Board of Education and/or GVSU.
- Prepare or approve manuals, guidelines and reports on State educational policies and practices for distribution to the School.
- Confer with federal, state and local school officials to develop curricula and establish guidelines for educational programs.
- Participate in and conduct workshops, conferences and in-services for professional growth and staff development.
- Initiate and implement processes for monitoring and evaluating student achievement and growth.
- Provide instructional leadership and support while overseeing the development and implementation of classroom curriculum.
- Create high performance teams of instructional and support staff, parents and community.
- Create an atmosphere of security and trust, as well as, encourage innovation.
- Recruit, select and hire School staff.
- Supervise and evaluate administrative, instructional and support staff.
- Maintain complete and accurate records of the entire School program.
- Consult with parents/guardians regarding School academic and behavioral progress.
- Disseminate information and promote a sense of community involvement between School and parents, civic and business community.
- Monitor student behavior and address major code of conduct violations.
- Admit and transfer students.
- Other duties as assigned.
Requirements:
- Master's Degree preferred.
- Michigan teacher certification.
- Must comply with all applicable law related to the Administrator's certificate.
- Must meet continuing education requirements as prescribed by rules promulgated by the State of Michigan, as applicable.
- Meet NCLB requirements, as applicable.
- Exemplary teaching experience.
- Two (2) years of administrative or comparable experience preferred.
- Evidence of recent and ongoing professional development.
- Evidence of recent roles as conference workshop facilitator or presenter.
- Verbal and written communication skills.
- Ability to communicate in oral and written interview, knowledge of current methodologies and research in education and instruction.
- Evidence to support community involvement and leadership.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

Job Title:            Teacher (Full-Time)
Contract:            School Year
Reports To:       Administrator/Principal
Employed By:    TRG

Job Summary:
Working in a full-time capacity, the academic subject area Teacher will facilitate student learning utilizing a variety of methodologies and curriculum
resources to increase student achievement, and work with an educational team to develop and implement the School program and develop
individualized learning plans for each student.

Performance Duties:
- Develop course objectives and outlines following School curriculum guidelines and requirements.
- Facilitate and communicate knowledge and strategies for learning to students.
- Prepare and plan lessons, projects and a variety of student assessments.
- Administer School approved standardized tests.
- Demonstrate competency in assigned subject areas, the art of instruction, the use of multiple teaching strategies and technology.
- Teach rules of conduct and proper etiquette.
- Develop individual and group activities, which stimulate growth in the cognitive, affective and physical dimensions of each student.
- Prepare and maintain accurate and appropriate student attendance and grade records as outlined by the Administrator/Principal.
- Prepare and disseminate student progress reports to parents.
- Maintain an orderly, secure, attractive and nurturing classroom environment conducive to learning.
- Supervise students within the School setting and on School grounds.
- Counsel students regarding academic and behavioral problems.
- Provide consistent and progressive corrective discipline.
- Promote ongoing communication with parents; establish and maintain home-School relationship.
- Participate in school fund-raisers, extra-curricular activities, School-wide annual programs and social events.
- Coordinate field trips.
- Other duties assigned by Administrator/Principal.
Requirements:
-
Bachelor's degree.
- Michigan teacher certification.
- Highly qualified under NCLB.
- Teaching experience preferred.
- Three (3) letters of recommendation.
- Satisfactory performance ratings in delivery of instruction and classroom management.
- Evidence of recent participation in professional development.
- Satisfactory completion of oral and written interview.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

Job Title:             Counselor/Social Worker
Contract:             Extended School Year
Reports To:        Administrator/Principal
Employed By:     TRG

Job Summary:
Under the direction of the Administrator/Principal, the Counselor/Social Worker will assist in the supervision of support staff and facilitate School programs. The Counselor/Social Worker will also provide personal, social and educational counseling to the student of Hanley International Academy.

Performance Duties:
- Supervise students.
- Counsel students.
- Establish and maintain communication with parents.
- Develop and facilitate programs and workshops for parents.
- Make home visits as needed.
- Provide referrals to designated agencies as needed.
- Facilitate various groups as needed.
- Implement conflict management groups.
- Write proposals and make application for grants.
- Utilize technology.
- Assume other duties as assigned by Administrator/Principal  
Requirements:
- Master's Degree.
- Previous experience in counseling preferred.
- Meet NCLB requirements, as applicable.
- Three (3) letters of recommendation.
- Previous experience in program planning and implementation.
- Administrative and organizational experience.
- Ability to motivate and community with parents.
- Previous experience in education.
- Ability to write proposals and grants and facilitate implementation.
- Previous experience in education.
- Ability to write proposals and grants and facilitate implementation.
- Satisfactory completion of oral and written interview.
- Proficient in the use of technology. 
- Criminal Records clearance.
- Unprofessional Conduct clearance.   

Job Title:             Title 1 Coordinator (Full-time)
Contract:             Extend School Year
Reports To:        Administrator/Principal
Employed By:     TRG

Job Summary:
The Title 1 Coordinator is responsible for providing instructional, operational and administrative leadership to the Title 1 and classroom teaching staff. He/she is also responsible for the teaching and learning of academically struggling students. He/she will organize, supervise and evaluate development of modified/individual curriculum and assessments administered by Title 1 staff and classroom teaching staff, and provide updated communication to Administrator/Principal and parents.

Performance Duties:
- Develop course objectives and outlines following School curriculum guidelines and requirements.
- Facilitate and communicate knowledge and strategies for learning to students.
- Prepare and plan lessons, projects and a variety of student assessments.
- Administer School-approved standardized tests.
- Demonstrate competency in assigned subject areas, the art of instruction, the use of multiple teaching strategies and technology.
- Teach rules of conduct and proper etiquette.
- Develop individual and group activities, which stimulate growth in the cognitive, affective and physical dimensions of each student.
- Prepare, maintain, and supervise accurate and appropriate student attendance, and daily tracking logs as outlined by the Administrator/Principal.
- Prepare and disseminate student progress reports to parents.
- Maintain and orderly, secure, attractive and nurturing classroom environment conducive to learning.
- Supervise students within the School setting and on School grounds.
- Counsel students regarding academic and behavioral problems.
- Provide consistent and progressive corrective discipline.
- Promote ongoing communication with parents; establish and maintain home-school relationship.
- Participate in School fund-raisers, extra-curricular activities, School-wide annual programs and social events.
- Prepare schedule for Title 1 time in classrooms and with pull-out groups of students,
- Participate and provide guidance for the School Child Study Team.
- Participate on the School Improvement Team and provide student achievement data for decision making.
- Participate in and conduct workshops, conference and in-services for professional growth and staff development.
- Initiate and implement process for monitoring and evaluating student achievement and growth.
- Provide instructional leadership and support while overseeing the development and implementation of classroom curriculum.
- Create an atmosphere of security and trust, as well as, encourage innovation.
- Participate in recruiting, selecting and hiring of Title 1 staff.
- Supervise and evaluate Title 1 staff.
- Maintain complete and accurate records of the entire Title 1 program.
- Consult with parent/guardians regarding student academic and behavioral progress.
- Other duties and assigned by Administrator/Principal.
Requirements:
- Bachelor's degree.
- Master's degree and/or Reading Endorsement preferred.
- Michigan teacher certification.
- Highly Qualified under NCLB.
- Teaching experience preferred.
- Three (3) letters of recommendation.
- Verbal and written communication skills.
- Able to communicate in oral and written interview, knowledge of current methodologies and research in education and instructions.
- Satisfactory performance ratings in delivery of instruction and classroom management.
- Evidence of recent participation in professional development.
- Satisfactory completion of oral and written interview.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

Job Title:             Office Manager/Administrative Assistance
Contract:             Extended School Year
Reports To:        Administrator/Principal
Employed By:     TRG

Job Summary:
Provide secretarial, administrative and clerical support to Administrator/Principal and perform secretarial/clerical duties of the School.

Performance Duties:
- Compose and transcribe correspondence, bulletins, memorandums, utilizing computer word processing programs.
- Proficient in IBM Word Perfect, Excel and desktop publishing programs.
- Create database, forms, table, charts, records, and spreadsheets utilizing appropriate computer software.
- Compile data for Board of Directors; state and federal reports.
- Proofread and edit drafts and final copy materials for appropriate and consistent format, accuracy of date, punctuation, spelling and grammar.
- Greet and screen visitors.
- Receive and screen telephone calls and accurately record messages.
- Maintain Administrator/Principal's calendar.
- Maintain School's calendar of events.
- Communicate with students and direct them to appropriate staff members when necessary.
- Respond to and disseminate information related to general activities and operations of the School.
- Operate standard office equipment (computer, typewriter, copier, calculator, etc.)
- Arrange meetings and conferences; schedule interviews and appointments.
- Establish, maintain and revise record keeping.
- Classify and sort mail, files, correspondence and documents.
- Accept and keep record of transaction.
- Assist in ordering Schools supplies and textbooks.
- Assume other duties as assigned by the School Administrator/Principal.
Requirements:
- High school diploma or equivalent; business school or college course work preferred.
- Previous secretarial experience (min 2-3 years)
- Strong verbal and written skills.
- Strong organizational skills.
- Ability to maintain discretion.
- Self-motivated.
- Computer proficiency and ability to operate standard office equipment.
- Three (3) letters of recommendation.
- Satisfactory completion of typing test and written and oral interview.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

Job Title:             Special Subject Teacher (Arts, Music, Physical Education, Computers)
Contract:             Part time/Full time
Reports to:         Administrator/Principal
Employed By:     TRG

Job Summary:
As a part time or full time instructor, the Special Subject Teacher will teach visual arts, vocal music and/or physical education to multi-grade or single grade classes of students and collaborate with core subject Teachers to integrate his/her respective discipline into other disciplines.

Performance Duties:
- Communicate knowledge of respective disciplines (visual arts, vocal music, computers and physical education/health) to students.
- Supervise students within School setting and on School grounds.
- Maintain accurate attendance and grade reports.
- Develop respective discipline curricula, course objectives and outlines for health and physical education, vocal music, and visual art.
- Develop integrated curriculum units with the educational team.
- Model and teach application of respective discipline skills and techniques.
- Organize School/community art fair and music/performance festivals.
- Utilize technology to deliver instruction and enhance curriculum.
- Prepare and disseminate informal and formal progress reports to core subject Teachers and parents.
- Additional instructional and related duties as assigned by Administrator/Principal.
Requirements:
- Bachelor's Degree.
- Michigan teacher certification in assigned teaching area.
- Highly Qualified under NCLB.
- Previous teaching experience preferred.
- Portfolio and/or evidence of expertise in visual art, vocal music or physical/health education.
- Three (3) letters of recommendation.
- Evidence of satisfactory ratings in delivery of instruction and classroom management.
- Satisfactory completion of oral and written interview.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

Job Title:             Maintenance/Custodian
Contract:             Extended Year
Reports To:        Administrator/Principal
Employed By:     TRG

Job Summary:
Under supervision of Administrator/Principal, maintain School and School grounds, performing a wide range of cleaning, maintenance and repair duties.

Performance Duties:
- Keep building clean of graffiti.
- Paint as needed.
- Perform routine maintenance - replace light bulbs, repair leaky faucets, move office and classroom furniture.
- Keep surrounding grounds free from litter and all inappropriate material.
- Repair equipment as needed.
- Make deliveries as needed.
- Receive and transport deliveries to designated locations.
- Clean and sanitize cafeteria daily.
- Clean and restore areas as needed in the event of student illness.
- Handle all electrical, plumbing, carpentry and other general maintenance repairs.
Requirements:
- High school diploma or push furniture and cleaning equipment; ability to do job with or without accommodations.
- Ability to utilize standard cleaning equipment and industrial equipment (polisher, buffer, etc.)
- Ability to safely utilize chemical cleaners and disinfectants.
- Self-motivated and high level of initiative.
- Previous experience necessary.
- Three (3) letters of recommendation from previous employers.
- Satisfactory completion of oral and written interview.
- Be familiar with state and federal codes and regulations.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

Job Title:            Para-Pro (Full or Part time)
Contract:            School Year
Reports to:        Administrator/Principal or Title 1 Coordinator
Employed By:    TRG

Job Summary:
Working to assist the classroom Teacher with student learning to increase student achievement, and work with the educational team to develop and implement the School and/or classroom program.

Performance Duties:
Assist the classroom Teacher to do the following:
- Facilitate and communicate knowledge and strategies for learning to students.
- Prepare projects.
- Demonstrate competency in assigned subject areas and the use of multiple teaching strategies and technology.
- Teach rules of conduct and proper etiquette
- Counsel students regarding academic and behavioral problems.
- Provide consistent and progressive corrective discipline.
- Participate in School fund-raisers, extra-curricular activities, School-wide annual programs and social events.
- Coordinated field trips.
- Other duties assigned by the classroom Teacher.
Requirements:
- Associate Degree or pass competency test.
- Highly Qualified under NCLB.
- Experience preferred.
- Three (3) letters of recommendation.
- Ability to work with young people.
- Willingness to participate in professional development.
- Satisfactory completion of oral and written interview.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

Job Title:             RTI - Administrative Assistant
Contract:             School Year
Reports To:        Administrator/Principal
Employed By:     TRG

Job Summary:
Coordinate the Response to Intervention program.

Performance Duties:
- Assist Administrator/Principal with student discipline through the RTI Program.
- Coordinate and direct the RTI Program.
- Develop student behavior contracts.
- Maintain log of students served through the RTI Program.
- Communicate with parents and Teachers regarding student behavior.
- Compile data and reports for the Board of Directors.
- Communicate with students and direct them to appropriate resources when necessary.
- Respond and disseminate information related to student discipline to appropriate persons within the School.
- Establish, maintain and revise record keeping.
- Assume other duties as assigned by the School Administrator/Principal.
Requirements:
- Associate degree or two (2) years of college preferred.
- Previous experience with student discipline preferred.
- Strong verbal and written skills.
- Strong organization skills.
- Ability to maintain discretion.
- Self-motivated.
- Computer proficiency.
- Three (3) letters of recommendation.
- Ability to create database, forms, tables, charts, records, spread sheets, etc., utilizing appropriate computer software.
- Criminal Records clearance.
- Unprofessional Conduct clearance.

SCHEDULE 7-4

METHOD OF ACCOUNTABILITY AND PUPIL ASSESSMENT

Grand Valley State University shall evaluate the success of the Academy by considering multiple areas of performance. A Comprehensive Performance Review (CPR) system will be established by Grand Valley State University Charter Schools Office and shall include, but not be limited to, the performance of the Academy in the areas of student performance board governance, organizational performance, compliance reporting, facility conditions, fiscal strength and reporting and other pertinent performance data, as required by federal and state law, the authorizing contract, or desired by the authorizer for review.

Included in the Comprehensive Performance Review shall be the requirements of Article VI Section 6.5 of authorizing agreement, which state:

Section 6.5. Methods of Accountability. In addition to those set forth in this Section 6.5, the Academy shall evaluate it's pupils' work based on the
                   assessment strategies identified in the Schedules. To the extent applicable, the pupil performance of the Academy shall be assessed using
                   using at least the Michigan Education Assessment Program (MEAP) test or the Michigan Merit Examination (MME) designated under the
                   Code. The Academy shall provide the University Charter Schools Office with copies of reports, assessments and test results concerning
                   the following:

                        a)    educational outcomes achieved by pupils attending the Academy and other reports reasonably requested by the University Charter
                               Schools Office;

                        b)    an assessment of the Academy's student performance at the end of each academic school year or at such other times as the
                               University Board may reasonably request;

                        c)    an annual education report in accordance with the Code;

                        d)    an annually administered nationally recognized norm-referenced achievement test for the Academy's grade configuration, or
                               a program of testing approved by the University Charter Schools Office Director; and

                        e)    all test required under Applicable Law.

The University Board may use such reports, assessments and test results in making its decision to revoke, terminate, or not issue a new contract at the end of the Contract.

Date: 5/24/12                                        (signed)
                                                            Board President/Vice President Signature

Secretary's Certification:

I certify that the foregoing resolution was duly adopted by the Hanley Board of Directors at a properly noticed open meeting held on the 24th day of
May, 2012, at which a quorum was present.

                                                            (signed)
                                                            Treasurer Signing for Board Secretary

SCHEDULE 7-5

ACADEMY'S ADMISSION POLICIES AND CRITERIA

BOARD OF DIRECTORS
HANLEY INTERNATIONAL ACADEMY

ADMISSION OF STUDENTS

Reference: MCL 380.502(3)(e)(iii); MCL 380.504

The Board of Directors will allow students who reside in Michigan to enroll in the Academy in accordance with limits established by the Board of Directors. Because space is limited, each student must enroll each year. Preferences will be in writing and given to currently-enrolled students and siblings of enrolled students.

When maximum enrollment for a grade has been reached, applicants shall be placed on a waiting list and admitted on the basis of a lottery system.

The Board authorizes the Principal to deny admission to any student who has a record of behavior s/he believes would constitute a threat to the safety and well being of fellow student and staff.

Any pupil enrolled in a school identified as a "Persistently Dangerous School" shall be allowed to attend a safe school within the local District in which a public school academy is located. The Board of Directors shall offer the pupils attending a school identified as a Persistently Dangerous School the opportunity to transfer to a safe public school within the local District within ten days of receiving the official complaint.

The Principal shall develop Administrative Guidelines for the proper implementation of this policy. Any such denial shall be reported to the Board at its next regular meeting.

Adopted 3/24/11

ENROLLMENT

Click below to view and print our application form (PDF file)
- Hanley International Academy Application
- MI School Immunization Requirements
- Enrollment Checklist

Thank you for your interest in our school, Hanley International Academy. We appreciate that you are considering our academy to be entrusted with your child's education. We recognize the importance of the decision you are making on behalf of your child's education and we trust that we are able to meet his/her needs.

The enrollment process:

During "Open Enrollment"
    Every year Hanley International Academy holds a two (2) week "Open Enrollment" for the upcoming school year. The two (2) week time frame
    will be posted on our website in March of the current school year for the upcoming year. An Application for Admission Form should be   
    submitted to the school during the "Open Enrollment" period.

    If more new applicants apply during "Open Enrollment" than spaces available (per grade level) then all applications will be put into a lottery.
    Applications are randomly selected until all spaces have been filled. The remaining applicants not placed in a class will be placed on a waitlist
    in the order they are drawn until all the applications have been placed either in a class or on the waiting list. As openings occur, those on the   
    waiting list will be contacted and offered admission. If fewer applicants apply than we have spaces available (per grade level) then all
    applicants are accepted.

After "Open Enrollment"
   
If you apply after the "Open Enrollment" period, and there are no names on the waitlist for the grade requested, all applicants in their grade
    level until that grade is full. If the grade requested is full at the time of submission, all new applicants will be put on the waitlist until
    a space becomes available.

    If an applicant is applying for enrollment for the current year please contact us at 313-875-8888 and we will inform you if spaces are
    available in the grade being requested. If an opening is available the applicant will be immediately placed in the appropriate class. If there
    are no openings you may still complete an application and be put on the waitlist.

    All applicants on the waitlist that did not get admitted to Hanley will be informed of when the enrollment process will begin for the upcoming
    school year and they may reapply. A new application must be completed each year a student applies at Hanley until they are officially enrolled.

Hanley International Academy
Attention: Student Enrollment
2400 Denton Street
Hamtramck, MI 48212

 

SCHEDULE 7-6

SCHOOL CALENDAR AND SCHOOL DAY SCHEDULE

Day Schedule:

Start of the day: 7:45 am

Lunch: 10:50 - 12:25 (25 minute blocks)

End of the day: 3:15pm

School Calendar 2012-2013
School Day: 7:45 am - 3:15 pm
Number of Days 180
Tentative

August
15                                  All staff return
29&30                           Student Orientation
27-31                            Kindergarten Assessment Week

September - Respect
4                                    First day of School
17                                  21st century afterschool begins
20                                  Open House/Curriculum Carnival 3:30-6:00pm
TBD                               MAP/Performance Series Testing

October - Responsibility
1-4                                 Spirit Week
3                                     Count Day (100% Attendance Needed)
4                                     Homecoming/MEAP Rally
5                                     Professional Development - (No school for students)
9                                     MEAP Starts
15                                   Progress Reports
26                                   MEAP ends
30                                   National Mix It Up Day
TBD                               Hearing/Vision Screening
TBD                               Mobile Dentist

November - Citizenship
6                                     Professional Development - (No school for students)
21-23                              SCHOOL CLOSED - Thanksgiving
26                                   School Resumes
30                                   First Trimester Ends
TBD                                Picture Re-Take (9am - 11am)

December - Integrity
3                                     Second Trimester Begins
3                                     Honors Assembly 6th - 8th
4                                     Honors Assembly K-2nd
5                                     Professional Development (No school for students)
6                                     Honors Assembly 3rd - 5th
12-13                             Parent/Teacher Conferences (4-7pm); Report cards distributed
17-21                             Santa Shop
20                                   Holiday Celebration
21                                   21st century afterschool end
24-4                                SCHOOL CLOSED - Holiday Recess

January - Perseverance
7                                     School Resumes
21                                   SCHOOL CLOSED - Observance of Martin Luther King Jr
22                                   21st century afterschool begins
24                                   National Honor Society Assembly
29                                   Progress Reports
TBD                                Hanley Spelling Bee
TBD                                MAP/Performance Series testing

February - Compassion
13                                   Count Day (100% Attendance Needed)
15                                   Professional Development (No school for students)
18                                   SCHOOL CLOSED - President's Day
22                                   Black History Program
TBD                                Daddy/Daughter dance
TBD                                TRG Charter School Spelling Bee

March - Wisdom
6                                     Professional Development (No school for students)
14                                   Second Trimester Ends
18                                   Third Trimester Begins
18                                   Honors Assembly 6th - 8th
20                                   Parent/Teacher Conferences (4-6pm); Report Cards Distributed
20                                   Honors Assembly K-2nd
21                                   Honors Assembly 3rd - 5th
22                                   Science Fair Projects
27                                   Career Day
29-5                                SCHOOL CLOSED - Spring Break
TBD                                Battle of the Books

April - Loyalty
8                                     School resumes
19                                   Earth Day Celebrations
TBD                                Spring Pictures

May - Cooperation
1                                      ACES Day
6-10                                 Charter School Week/Teacher Appreciation Week
7                                      21st century afterschool ends
27                                    SCHOOL CLOSED - Memorial Day Observance
TBD                                MAP/Performance Series Testing

June - Courage
6                                       8th grade graduation
10                                     Honors Assembly 6th - 8th
12                                     Honors Assembly K-2nd
13                                     Honors Assembly 3rd - 5th
14                                     Moving Up Day
14                                     Field Day
18                                     HALF DAY (Students dismiss at 11:45am)
19                                     Kindergarten Graduation
19                                     Last day of School - HALF DAY (Students dismiss at 11:45am)
                                         Third Trimester Ends - Report Cards Distributed

SCHEDULE 7-7

AGE/GRADE RANGE OF PUPILS ENROLLED

The Academy is authorized and will offer Prekindergarten through Eighth grade(s) and may add additional grades and vocational programs in the
future, pursuant to section 9.1 of Article IX of the Terms and Conditions.

SCHEDULE 7-8

ADDRESS AND DESCRIPTION OF PROPOSED PHYSICAL PLANT; LEASE
OR DEED FOR PROPOSED SITE; OCCUPANCY CERTIFICATE

Hanley Academy is located at 2400 Denton St., Hamtramck 48212. The 63,000 square foot building
is comprised of two floors which currently house grade K-8. The building contains 32 classrooms,
2 separate office complexes, a variety of ancillary rooms which serve smaller groups of students,
gymnasium, technology room, and a cafeteria/auditorium.

Assignment of Agreement For Purchase of Real Estate

THIS ASSIGNMENT OF AGREEMENT FOR PURCHASE OF REAL ESTATE
(hereinafter referred to as the "Assignment"), made this September 27, 2010, between and among THE ROMINE
GROUP, INC., a Michigan corporation ("Romine") and HANLEY INTERNATIONAL ACADEMY, INC.,
a Michigan non-profit corporation ("Hanley").

RECITALS:

A.                Denton Associates L.L.C. ("Seller"), and Romine entered into an Agreement for Purchase of Real Estate dated March 29, 2010 ("the
                    Purchase Agreement") whereby Romine agreed to purchase from Seller certain land and related rights located in the City of Hamtramck,
                    Wayne County, Michigan, which land is comprised of 2 contiguous parcels of land identified on Exhibit A hereto (collectively,
                    Property").

B.                Romine desires to assign the Purchase Agreement and Hanley desires to accepts and assume the Purchase Agreement.

NOW, THEREFORE, FOR AND IN CONSIDERATION of ten dollars ($10) in hand paid, the mutual entry into this Assignment by the parties hereto, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by each party hereto, the parties hereto hereby agree as follows:

                    1.            Romine hereby assigns to Hanley, and Hanley hereby accepts and assumes from Romine, all of Romine's interest, rights and
                                   obligations as purchaser under the provisions of the Purchase Agreement, including without limitation, Romine's right, title and
                                   interest in and to any and all deposit money's paid to Seller and all of Romine's remedies if Seller defaults.

                    2.            Romine shall indemnify, defend and hold harmless Hanley from and against any and all claims, disputes, liabilities, losses,
                                   injuries and damages and all related costs and expenses for any default by Romine in performing its obligations under the
                                   Purchase Agreement before the date hereof.

                    3.            Hanley shall indemnify, defend and hold harmless Romine from and against any and all claims, disputes, liabilities, losses,
                                   injuries and damages and all related costs and expenses for any default by Hanley in performing its obligations under the
                                   Purchase Agreement on or after the date hereof.

                    4.            This Assignment may be executed in multiple counterparts and by use of counterpart signature pages, but all such
                                   counterparts shall constitute but one and the same Assignment. Signature pages bearing facsimile signatures shall be
                                   effective for purposes of binding the parties to this Assignment.

IN WITNESS WHEREOF, each party hereto has caused this Assignment to be executed as of the date first noted above.

THE ROMINE GROUP, INC.                                    HANLEY INTERNATIONAL ACADEMY, INC

By: (signature)                                                              By: (signature)
Name: Paul C. Romine                                                 Name: Jeffrey M. Leib
Its: President                                                                Its: President

Exhibit "A"
Property

PARCEL 1:

Part of Lots 8 through 13 inclusive, also that part of a 10 foot vacated alley adjoining to the rear of Lots 12 and 13, all of Denton's Subdivision as recorded in Liber 9, Page 79 of Plats, Wayne County Records and described as beginning at the Northwesterly corner of said Lot 12; Thence along the Southerly line of Denton Avenue, 50 feet wide, North 64 deg. 13' 19" East 150.00 feet; Thence along the Easterly line of said Lot 8, South 25 deg. 46' 41" East 90.20 feet; Thence South 39 deg. 31' 19" West 167.01 feet; Thence along the Southerly line of said 10 foot alley, South 64 deg. 13' 19" West 0.40 feet; Thence in part, along the centerline of an existing 12 inch brick and block wall, North 25 deg. 44' 45" West 160.00 feet to a point on the Southerly line of Denton Avenue; Thence North 64 deg. 13' 19" East 2.04 feet to the point of the beginning.

PARCEL 2:

Part of Lot 13 and Lots 14 through 32, inclusive, also a 10 foot wide vacated alley adjoining to the rear of said lots all of Denton's Subdivision as recorded in Liber 9 of Plats, Page 79, Wayne County Records and described as beginning at the Northwest corner of said Lot 32; Thence along the Southerly line of Denton Avenue 50 feet wide, North 64 deg. 13' 19" East 597.96 feet to a point 2.04 feet Westerly of the Northeasterly corner of Lot 13; Thence in part along the centerline of an existing 12 inch brick and block wall, South 25 deg. 44' 45" East 160.00 feet to a point of the Southerly line of said 10 foot alley; Thence along said alley line, South 64 deg. 13' 19" West 597.87 feet; Thence North 25 deg. 45' 41" West 160.00 feet to the point of beginning.

Commonly known as 2400-2440 Denton Street, Hamtramck, Michigan 48212
Tax Parcel Identification Number: 41-001-01-0008-301; 41-001-01-0013-301

SELLERS SETTLEMENTS STATEMENT

Seller:                                        Denton Associates, LLC, a Michigan limited liability company

Buyer:                                        Hanley International Academy, Inc., a Michigan non-profit corporation

Property Address:                      2400-2440 Denton
                                                  Hamtramck, MI 48212

Commitment #:                           11864256                 Settlement Date: September 29, 2010
Troy NCS Case:                        B-105287
 

                                                                                                    Expenses                                    Credits
Sale Price                                                                                                                                       $870,000.00
Option Fee Paid Directly to Seller                                                $2,000.00            
Fidelity National Title Insurance Company
Est. Recording/Other/Closing Fees/Costs                                     $   300.00
Owner's Policy up to $870,000.00 sim issue crd                          $   500.00
State/Local Transfer Taxes                                                          Exempt
Second Half Summer 2010 Taxes, Parcels 1 & 2                         $14787.70
Parcel 1 (41-001-01-0008-301)
2010 Summer Tax Paid $4687.77
$4687.77/365 = $12.85/diem
9/29/10 - 6/30/11 = 274 days                                                                                                         $    3,520.90  
2009 Winter Tax Paid $757.81
$757.81/365 = $2.08/diem
9/29/10 - 12/31/10 = 93 days                                                                                                         $       193.44
Parcel 2 (41-001-01-0013-301)
2010 Summer Tax Paid $24,887.63
$24.887.63/365 = $68.19/diem
9/29/10 - 6/30/11 = 274 days                                                                                                         $  18,684.06
2009 Winter Tax Paid $4023.40
$4023.40/365 = $11.03/diem                                                                                                         
9/29/10 - 12/31/10 = 93 days                                                                                                         $     1,025.79
Water/Sewer Utilities                                                                                                                      POC
Subtotal                                                                                       $ 17,587.71                                $  893,424.19
Balance due to Seller                                                                   $875,836.48                           
Totals                                                                                          $893,424.19                               $  893.424.19

This settlement statement was prepared by Fidelity National Title Insurance Company with information and figures provided by Seller and Buyer. Seller and Buyer hereby approve the settlement statement and authorize disbursement of funds accordingly. Seller and Buyer hereby release and agree to hold Fidelity National Title Insurance Company harmless from any and all claims or causes of action relative to the accuracy of the closing figures.

Escrow Office:                                            Approved by Seller:

(signed)                                                      (signed)
Ann B. Schafer                                           Denton Associates, LLC
                                                                  By: Kenyon Investment Co LLC
                                                                  Its: Manager

                                                                  (signed)
                                                                  By: Ronald A. Schwartz
                                                                  Its: Manager

WARRANTY DEED

KNOW ALL PERSONS BY THESE PRESENTS: That DENTON ASSOCIATES, LLC, a Michigan limited liability company ("Grantor"), whose address is 6020 West Maple Road, Ste 503, West Bloomfield, Michigan 48322, conveys and warrants to HANLEY INTERNATIONAL ACADEMY, INC., a Michigan nonprofit corporation ("Grantee"), whose address is 7877 Stead, Ste 100, Utica, Michigan 48317, the following described premises situated in the City of Hamtramck, County of Wayne, State of Michigan, to-wit:

PARCEL 1:

Part of Lots 8 through 13 inclusive, also that part of a 10 foot vacated alley adjoining to the rear of Lots 12 and 13, all of Denton's Subdivision as recorded in Liber 9, Page 79 of Plats, Wayne County Records and described as beginning at the Northwesterly corner of said Lot 12; Thence along the Southerly line of Denton Avenue, 50 feet wide, North 64 deg. 13' 19" East 150.00 feet; Thence along the Easterly line of said Lot 8, South 25 deg. 46' 41" East 90.20 feet; Thence South 39 deg. 13' 19" West 167.01 feet; Thence along the Southerly line of said 10 foot alley, South 64 deg. 13' 19" West 0.40 feet; Thence in part, along the centerline of an existing 12 inch brick and block wall, North 25 deg. 44' 45" West 160.00 feet to a point on the Southerly line of Denton Avenue; Thence North 64 deg. 13' 19" East 2.04 feet to the point of beginning.

PARCEL 2:

Part of Lot 13 and Lots 14 through 32, inclusive, also a 10 foot wide vacated alley adjoining to the rear of said lots all of Denton's Subdivision as recorded in Liber 9 of Plats, page 79, Wayne County Records and described as beginning at the Northwest corner of said Lot 32; Thence along the Southerly line of Denton Avenue 50 feet wide, North 64 deg. 13' 19" East 597.96 feet to a point 2.04 feet Westerly of the Northeasterly corner of Lot 13; Thence in part along the centerline of an existing 12 inch brick and block wall, South 25 deg. 44' 45" East 160.00 feet to a point on the Southerly line of said 10 foot alley; Thence along said alley line, South 64 deg. 13' 19" West 597.87 feet; Thence North 25 deg. 45' 41" West 160.00 feet to the point of beginning.

Commonly known as: 2400-2440 Denton Street, Hamtramck, Michigan 48212
Tax Parcel Identification Number: 41-001-01-0008-301' 41-001-01-0013-301

Together with all and singular tenements, hereditaments and appurtenances, there unto belonging or in anywise appertaining for the sum of: [See Real Estate Transfer Ta Valuation Affidavit for consideration. THIS TRANSACTION IS EXEMPT FROM TRANSFER TAXES PURSUANT TO MCL 380-503(8) 1966 PA 134, MCL 207.501 TO 207.513]; subject to easements, building restrictions, zoning ordinances, reservations, and limitations of record, if any, matters disclosed by an accurate survey of the property, and those other matters set forth on Exhibit "A" attached hereto and incorporated herein by reference (the "Permitted Exceptions").

Grantor grants to Grantee the right to make all permissible divisions under section 108 of the Michigan Land Division Act, Act No 288 of the Public Acts of 1967, as amended.

This property may be located within the vicinity of farmland or a farm operation. Generally accepted agricultural and management practices which may generate noise, dust, odors, and other associated conditions may be used and are protected by the Michigan right to farm act.

Effective this 27th day of September, 2010

GRANTOR:

DENTON ASSOCIATES, LLC, a Michigan limited liability company

By:    Kenyon Investment Co., LLC, a Michigan limited liability company
Its:    Manager
By:    (signed) Ronald A. Schwartz
Its:    Manager

STATE OF MICHIGAN
COUNTY OF WAYNE

The foregoing instrument was acknowledged before me this 27th day of September, 2010, by Ronald A Schwartz, the Manager of Kenyon Investment Co, LLC, a Michigan limited liability company, the Manager of DENTON ASSOCIATES, LLC, a Michigan limited liability company, on behalf of said limited liability company.

(signed) Roberta A Brown
Notary Public, State of Michigan, County of Macomb
My Commission Expires: June 23, 2011
Acting in the County of Wayne

INSTRUMENT DRAFTED BY:                            WHEN RECORDED RETURN TO AND SEND
Danielle M. Graceffa, Esq.                                  SUBSEQUENT TAX BILLS TO:
Dykema Gossett PLLC                                        Grantee
400 Renaissance Center
Detroit, MI 48243
(313) 568-6800

EXHIBIT "A"
PERMITTED EXCEPTIONS

1.                Real estate taxes and assessments that are a lien on the property, but are not yet due and payable.

2.                Reservation of easement in the vacated alley as evidenced by the instrument recorded July 27, 1984 in Liber 22057, Page 771.

3.                Oil, gas, mineral and aboriginal antiquities reserved by the State of Michigan along with terms, conditions and provisions contained in deed
                   recorded in Liber 20992, Page 647.

CERTIFICATE OF USE AND OCCUPANCY
TEMPORARY

Michigan Department of Licensing and Regulatory Affairs
Bureau of Contruction Codes/Building Divisioin
PO Box 30255
Lansing, MI 48909
(517) 241-9317

Building Permit No. B031231
Hanley International Academy
2400 Denton Rd
Hamtramck, MI
Wayne, County

The above named building of use Group E/A4 and Construction Type 2B is approved for use and occupancy for a period of three (3) months with an expiration date of August 31, 2012.

Conditions:

THIS APPROVAL IS GRANTED UNDER THE AUTHORITY OF SECTIONS 13 OF ACT 230 OF THE PUBLIC ACTS OF 1972, AS AMENDED, BEING §125.1513 OF THE MICHIGAN COMPILED LAWS, AND, IN ACCORDANCE WITH SECTION 110.0 OF THE STATE BUILDING CODE. THIS SHALL SUPERSEDE AND VOID ANY PREVIOUS APPROVAL OF USE AND OCCUPANCY.

(signed)
Larry Lehman, Chief
Charles E. Curtis, Assistant Chief
Building Division
May 31, 2012